You may be inexperienced but from your post it appears to be in a  good way where you want to minimize risk by having as little debt as possible.  

Talk to the bank and make sure that they won't do that, if they will then it puts her at too much risk. 

I'm not comfortable taking that kind of risk at the moment.Additionally, fix and flip requires knowing contractors and dealing with all the logistics of doing a rehab.

Risk is just way too high with such a minimal return.

First risk is financing...

Also, what are the benefits and risks of hard money? 

Not getting good vibes from this deal as I am a numbers guy and understand numbers and potential risk.

@Mike Bales That's one of the risks you run as a real estate investor, check out a HELOC, you can borrow against it and usually pay interest only payments.

We really took a risk jumping this high in price point as our first 3 projects sold for $600k, $802k and $799k.

This is a great little area ,it’s got a lot going for it as mentioned above plus they have started work on the $500 million judicial Centre ,a little east of here towards twin aire and if you’re feeling brave and have good risk tolerance and cash you could look at streets north and south of English near Twin Aire .Good potential there ,it will take time though