You could become an Architect .Honestly , anyone would have the option to shop around .

Your options are already in front of you, you seem to want to make this work when the signs tell you otherwise.

That will hopefully give you some more options. 

2.) if I lease option it with a 2 year option will I be able to 1031, or not because my intent from the beginning of the lease option is to sell it?

Another option is you can pay her $500 to get out now and leave the place in good condition-do not hand over money until she's out and you've got the keys.She's also only renting a room, so there is nothing stopping you from moving in and occupying the rest of the house.

NY. 5 year draw, IO for 5 yrs and PI for 10 year repayment period.

NACA was formed in 1988 and provides an affordable option for potential first-time buyers:✅ No down payment✅ No closing costs or fees✅ No mortgage insurance✅ No consideration of credit score✅ Below market fixed interest rateThere are several requirements to be eligible, starting with attending one of their workshops.https://www.naca.com

Should I transfer the downpayment to the LLC account as an owner contribution and then log the income as repayments back to me?

Consequently, I am exploring the option of bringing in a local investor as a partner who will have a vested interest in managing the property effectively (skin in the game). 

Having someone with some skin in the game has been a good option.