I feel I have a good action plan, but wanted to check with more experienced investors just in case I'm missing anything.  

A legit assistance animal is not a pet, it is an assistive  like a wheelchair in the eyes of Fair housing, Each state does have the right to limited regulation in this area, in WI we can now require documentation form a WI licensed professional, where previously an online Quack could sign off, there are also situations where you can deny, if the animal could cause a problem or pose a health risk for other tenants. be careful on this one and know the law. seek advice from a licensed professional. 

My lease ends in March '19, and I'd like to determine the viability of the following "live-in flip" plan from experienced investors and lenders in DFW:1.

Her ex mentioned seeing it was worth $125K online which would be a bit tough considering it needs a new kitchen, and even though I've been inside a couple times I don't even know if it's 1 or 2 baths (Zillow & Realtor say different things) Oh I'd love to have two contiguous properties! 

If all your questions are answered positively, I would still have a contingency clause in the purchase agreement that would allow you to "walk away" without any penalty that is financial and before I closed I would hire a professional and experienced Inspector that would make you aware of any possible negative/unexpected things that he discovered.I would not buy a single family house for rental unless it was used as a "house hacking" loan that I felt pretty good about qualifying for it.There is only a couple reasons that could make it OK to purchase. 

You can also check their reviews online at Google, Facebook, or Yelp.

We are closing on a college rental with more than 11% of the loan value in closing cost (conventional financing)…. this seems high - is anyone experiencing similar closing cost?

But if you decide to wait for the sale and be a participant in the tax auction, some counties have online tax sales, you can wipe not only your own mortgage but also the second and any liens that your borrower may have accumulated including but not limited to IRS liens and then move into REO by Tax Sale/Sherrif Deed. 

Running the numbers and need an experienced, well seasoned PM to run the property.

If you Really want yo help your uncle; get him an experienced agent should knows small multistory, and get him to a lender, do he has an idea of what is and is not possible.