Commercial lenders typically don't do preapprovals, but a forwarded email from your lender would suffice.

There's a .01% chance they come knocking on your door to check if you live there, so take that as you may.As far as the property management goes, make sure your numbers still work with the prop management fee (typically 5% - 10% of gross income, call around and see what companies will charge).Good luck!

They typically charge 1 full months rent and usually a minimum of $900-$1,000.

(typically between 3-6% with this home probably selling for 1 million+ in my neighborhood)How can I do this without having a license?

I typically focus on larger commercial properties, but would be happy to chat with you and see if we'd be a good fit. 

Typically a bank loan has origination costs- Is she getting your loan for free?

Typically, banks appraise these at 9% and most were selling at that prior to the past year.  

Should I set up some sort of LLC to protect my personal assets?

If I could secure a good rate with the HEL it may be the best option, but then don't HEL's typically require short loan periods (5-15 years)?

That said it does sort of seem that there is some pretty good opportunity with homes that need a little work.