Does she pay her rent on time, if so I would just give her some time and see if it's just a rough patch. 

My advice is to speak to a few local HMLs and ask them for their rehab estimate spreadsheet, which most should be happy to provide.FWIW, based on my assumptions above, you can’t pay more than around $480k for this property.

If a major repair is needed in the community and they can't fund it, they can call on the owners to pay for it. 

Each guest pays $29-49 depending on property size and that provides up to $1,000-2000 in damage protection in lieu of security deposit to satisfy the owner and avoid deposits. 

Issue with the line that you will run into is you will be paying for unused credit fees.

Landlords manage from a distance and "assume" everything is going great because tenants pay rent on time.

The str will close before the land sells and then I would like to recast the loan to pay off a portion with the land proceeds.  

@Imdhadur RahmanBest I’ve seen is 15% down, and you pay more in rate as a result of the down payment.

If you buy that location you’re paying someone $1mm to develop it for you.  

The point is to have the tenant help or fully pay the mortgage.This is where the question comes in.