Basically - any legal filings that come into play during that redemption period could cost you the house - but you wouldn't lose your money as long as you didn't default on your obligations to the court / auction.In Florida there is no inspections of foreclosed properties.  

Is it okay to make that investment and wait for a long term appreciation?

A business partner and I are working together to start investing in distressed properties with the goal of eventually flipping and renting apartments.

I am a licensed agent, have done Fix and Flips and Wholesale.

Do I hang tight and pay out of savings, hoping it's worth it in the long run? 

We would really to find a fix in flip property in the German Village, Olde Town East, or Merion Village.

Additionally, both the FHA and VA loan are for primary residence purchases only, so no flip/investment purchases.

If you rent out a property to someone, the property is the product and the rental - long term or short term - is the service.

But now reading this thread, I'm considering instead to ask her to do a sale price of her basis + 250k so she can avoid capital gains (she has lived in the home a long time).

Last thing you need is a spec house sitting on the market too long.