They are not always approved, and that could possibly take up three months.

If you want to add a partner, do it early as the Approval will be buyer specific, and adding a partner could be a huge delay after the Aprroval is issued.

My expectation is that anyone I approve will stay a long time and be a good tenant (i.e., 1-pay the rent, 2-don't trash the place, 3-don't bother the neighbors or the law).  

My credit union also won't write a loan under $50k.Be aware, though, that a pre-qual is not a pre-approval, and that even pre-approvals are not carved in stone.

Where could I find help with funding and how much do you think I could get approved for?

@Lutonya Johnson We bought our first place at 23 only because at 19 it didn't make sense :) If you daughter can get approved and find the right deal.

My portfolio lender has no limit for the number of mortgages, but I must now get committee approval on any new loans because those loans plus my fix and flip commitment with them exceed 2 million dollars. 

Documents you will sign after the Approval Letter is issued will include an Arms Length Affidavit which will state, among other things, that there are no undisclosed agreements and usually specifically that the owner will Not be allowed to remain in the house and/or rent it from you.

Try and get the lender to approve a short sale to you at the amount they owe, which may get them to work on it before foreclosure. 

As far as a cool off period no, asoon as the heloc is active you can use it, it may take a few weeks to apply and get it approved though.