I would lean toward using a warranty deed, as opposed to a quit claim deed, in order for the investor to maintain title insurance.

This was a complete interior renovation and exterior updating.

HELOC is a line of credit that you pull from whenever you need it and the interest is straight interest (as opposed to amortized interest). 

Moreover, when I'm leveraging my policy, I want to know that I am better off by leveraging it as opposed to simply investing directly in the alternative.With a poorly designed IBC policy, the numbers will never work out, because the high fees mean you have less cash going to work for you. so I had better been after the death benefit protection.

My tip starts with you as opposed to her.

But there's not a lot of photos on the property and the ones showing only mainly shows the exterior (and the exterior alone kinda tells me this house needs quite a bit of TLC, tall grass, dark and dated windows, discolored roof, etc.) i ran the numbers and i can actually average around 200 a month on this SFH, but im worried that i won't have enough cash on reserve for REHAB if the rehab alone is going to costs me almost as much as the property itself.

Flood simple costs me $500 a year as opposed to the $2800 quote I had. 

What @Jim K. described above sounds like a solid approach; hopefully I can guide him towards that.I am still leaning towards redoing the plaster as opposed to covering it with drywall.

Here is what I would expect your turns to look like with units that rent for $650 / month in MKE:  You will be repainting the entire unit, fixing broken cabinet doors, holes in a couple of the doors, the oven will look like it's never been cleaned (because it hasn't), things you didn't think could get all that dirty like baseboards, windows & exterior doors will need a lot of TLC to get clean, there will be at least one truckload of stuff left behind and any carpet in the unit will be needing replacement.Sometimes I recognize my posts come off a bit negative nancy, and by no means do I want to create a blanket argument that this is always the case with a $650 rental. 

Purchase price: $209,000 Cash invested: $17,000 Mostly cosmetic renovation, including paint, carpet, hardwood floors, light fixtures, exterior landscaping, etc.