She has 3 dogs which can complicate things and doesn't have much money and is in poor health. 

You're playing placing a bet on the future game here. 

Having a finished property that generates positive cash flow was the safer bet to hold onto. 

You bet his goals and the hosts/guests goals do not dovetail at all.

I suggest you read this forum thread: https://www.biggerpockets.com/forums/93/topics/58383-the-truth-about-wholesaling-Remember wholesaling is NOT investing, it is a marketing business and many do it very poorly as the barrier to entry is so low.

Or is there a way for poor college kids to afford this?

There was an auction for a condo unit where $125K units sold at auction for $40K which is what I got it for but one time they held an auction for a foreclosed unit where there is no reserve price indicated, was poorly advertised, and no one showed up except the owner and his twin brother.

I think it comes down to you the investor needing to raise your financial IQ to be able to advise your tax professional on what to do so they can implement the strategy instead of them strong arming you into a conservative and poor tax play.

Poor credit = not qualified for my units.  

@Julie FlynnAs everyone mentioned, a commercial or private loan would be your best bet.