I suggested her to pull a HELOC and finish the basement but she filed for bankruptcy and can't get any loans. 

If the ARV of the first one will be greater than when you bought it, you may be able to pull money out of the value of that one to fund and continue the other house. or if you have relatives that may want to loan you some money to finish the other house, that's another way to go.

It's a friend's listing: A 1482' house on a .84 acre lot that includes a 535' vacation house on the property.

Austin, TX Real Estate Investment OpportunityA 1482' house on a .84 acre lot that includes a 535' Small House- vacation house Seller is willing to sign an over market lease back of the property for 2-5 years.The MLS listing pics are here:https://lnkd.in/bz577JXIs this a good deal?

I ran an analysis if we were to rent each bedroom at $650 (which is competitive for this market), include all utilities, include the missing expenses from owner's log and furnish each apartment, the monthly cash flow numbers look much better.

Does the purchase include the real estate or just the business? 

I'd love to help you through the process, from start to finish.

You would likely rehab to a higher finish level for a flip than a buy and hold, which would result in a higher ARV. 

I think I create really good houses (concentrating on the home's systems and use long wearing finishes), then have been screening my own tenants and selling as turn-key.

If it's a quite steep slope, you should budget $400-500/sqft, depending on finishes.