We have also decided that family always comes first, money is just money and if something happens to our partnership or management style we will sell the building.

You can however use a hard money loan!

It depends on the hard money lender.

I would advise to use a short term hard money loan, acquire it quickly, rehab it, and refinance into a long term DSCR loan. 

some ideas:- yes you could put more money down upfront, even though it's not ideal.- Look for off-market deals that are much cheaper,  using hard money and then refinancing with a rental loan.- Find properties where the owner will finance most of it, so you only need a smaller loan with the higher interest for the down payment.- Take over a property where you can continue the seller’s lower interest payments.- Another thought to give why would you want to do a rental at all, I mean those terms are horrible. why not buy something else with a better return on invest?

We're here to help if you ever need hard money lending!

Also what else can you do with that money that will add value. 

Just sent her back her money with an email saying her lease is cancelled due to an obvious impending lease violation she revealed in her communication.

How would you suggest I use this money to generate the maximum amount of monthly cashflow? 

It's not logical to lose money and now would be a perfect time to get engaged in your business.