I would use hard money on the deal that’s the one in 1000 where the money is just so profitable that it makes sense but it would have to be a huge profit to be worth the gamble.  

I love living in this area, very convenient to everything.

Either way you want to make sure your insurance provider is on board, because if they would deny your claim anyway were something to happen you might as well not pay the premium and gamble your life savings.

Personally, I’d never consider that option for multiple reasons: 1) you cannot properly dispose of your own property as you can’t rent it by yourself, 2) the price is inflated as they make you pay for the convenience, 3) the performance of your unit is completely dependent on the performance of the building as a whole and the performance of the management, 4) property management is extremely expensive and they’re going to be the ones making most of the money while you take all the risks and 5) you cannot get rid of the property managers if they don’t perform.

See middle of the page for my full description. https://www.biggerpockets.com/forums/67/topics/427862-questions-about-brrrrr-methodI have 14 now. (9 apartments, 2 houses, 2 townhouses and 1 convenience store) 

This is why wholesaling doesn't work and why the stock market is an awful gamble.

In every world this is a mathematically inferior situation to paying less for the property, unless you are willing to gamble that the 10-40k is a drop in the bucket because the place is going to explode upwards in value...?

And she gets a new, safe, and convenient house to live in while in school.  

Unpermitted may not be a huge deal in some cases, but when it comes to egress and life safety issues you're gambling more than I closed off the dining room and made an extra bedroom.

So unless you are willing to gamble with your savings, you do not save much time buying turnkey.