If you just gifted your relatives 6% of the sales price, could they qualify for an FHA loan?  

Also having been part of closing out one's estate I would say that you are doing your relative a big favor by allowing the money to go to their estate versus actual real estate because then the executor of their will or trust will have to deal with it. 

For the loan, I've seen lower than 14% on hard money so let me know if you want some recommendations.As for your related question, in my opinion, it's best to ensure that all utilities are on for the duration of the project so you can spot/diagnose potential issues as well as simply for convenience.

By the way, unless your relative have a high paid, very secure job, and a big reserve, 2K negative cash flow is quite risky.

I’m not sure if you have to pay your relatives back or if they “gift” you the money.

Your relative and your family have no attachment to that property. 

@BP_all, it would be great to hear your relative experience in turnkey as well.

Tell your relative they are about to have company.

Given your relative proximity, years of experience, and Mod status would you care to weigh in on the invoiced items and amounts?  

@Franky Davis, Here's a BP blog article I wrote that might be helpful in thinking about your relatively passive options in REI: Three Key Routes for Passive Real Estate Investing