I understand that to get the best deal is the only effective way to generate income with this model.

She was already generating an income at that time from her houses, and I imagine that she won't need to get another job, unless she wants one.

You could be the best renovator in Tx but if no one knows about you, you will not generate any business. 

We have been in the market for a SFR for a few months now and are shifting our focus.Our ideal was a SFR with a 1 or 2 bedroom legal unit on property that we could generate additional income from towards our mortgage.

Since your plan is to hold very long term there is no advantage to buying new and likely a disadvantage in paying a higher initial price.Higher end B+/A SFH properties rarely have positive cash flow and depend on appreciation to generate true profit. 

I checked with TransUnion business services but they won't help if its for lead generation (unless the prospect gave me the phone number directly).

My point was to bring up the topic of generating specialty leads and maximizing the marketing dollar, and when it’s time to scale quantity and adopt new leads.

If you cant afford it or need the money you would generate from selling it for another property, sell it!!!

I’m currently on the lookout for small MFRs that will be able to generate cash-flow.

Crafting an arrangement that positions your rentals to generate the most VALUE - which should help you generate the most NOI is the name of the game.So, if managing the utilities is something you want on your plate, then write an all-inclusive lease.If you don't wish to be bothered, then make Tenants jointly responsible for utilities, etc.Best to you.