@Chad Smith, while I typically agree with others, I also know people who started and have been successful with larger projects right from the get go.Where I agree with others is that you may not have the basic knowledge to know where your holes are, i.e. the financing side.  

Any monetary penalty to them?

The nation is due for a monetary correction...when it comes, be it 2 months or 2 decades, do not stress and sell this house. 

How much does it flow regarding how many units can it serve (unless you have city water).Can you dump gravel as paths to the units, will customers accept that, or must you have blacktop put in.Will this be/become a bottom end drug dealer, Hooker, wife beater crime hole, or do you think you can get decent residents there.Just my 2 cents.

It just depends on how desperately you need the back owed rents and if your willing to be in the hole even farther then you are now. 

Specific performance is defined as "when one party to a sales agreement breaches the contract by not performing as required by the contract’s terms, the harmed party often does not want monetary damages but desires actual performance.

Whereas a lender is pigeon-holed to only certain programs.There are advantages in working with lenders and working with brokers, depending on the situation.

Or is there some loop hole i can advise her of that will help her maintain a roof over her head?

Make sure of the job responsibilities of each person, check and verify that they are all qualified for each of their roles, and find an attorney to read the deal and see if he can poke some holes in the deal, so you can go into this with your eyes wide open.

There's a lot of shame that came with my 80k hole to dig out of.