She has been trying to BORROW the funds she needs $550K to pay off the Husband and another $300K of additional funds (Totaling $850K) so that she has the EXTRA borrowed funds to be able to make 2-3 years of payments on the financing (versus raiding her retirement account).

Some strategies are much easier than others, and it is much safer to start with these (househacking, buy and hold single families, etc..).

Zillow rent estimator predicts $3000/month I’m not looking to cash flow much year 1.

There seems to usually be something that needs fixing or updating when you buy it but how do you know when it's too much?

I'm in urgent need of some guidance on the best way to approach this matter before pursuing litigation. 

It’s hard to say which is better as it depends on price point and how much renovations you are okay with.

The problem Im facing is that my job doesn't pay much.

Ultimately the true cost of acquisition and investment will need to be disclosed and assessed.

However, the scenario you described could be achieved with most of the local HMLs here; I don't think you needed to pay 16% for that.

I’m very grateful and lucky my investments have built so much equity and capital but I would like to move it into monthly cashflow so I can work away from a w-2.