I made myself a promise about a year ago that I want to in the long run end up working for myself and since then have been looking for ways to earn and invest my money.

Rents should try to reflect any extra costs you incur so long as the rent remains in line with the market rate.

It should be mentioned we will still be nearly doubling our investment with the prices she is suggesting, but could potentially be missing out on almost an extra 100k in profit should we finish and list at what I think it feel the market would support.  

oh also - if you are going to allow pets, especially dogs, get extra cash for them. 

So if you need extra money LOC is an open option. 

I am thinking maybe getting something on the cheaper side and remodel it, (although I have zero experience in doing that and I don’t think the bank will give me extra money to do the remodeling).

An additional benefit is that his income earned by any interest paid is taxed lower than capital gains.

I am doing my best to be able to find some RE Affiliate Marketing business where could I earn % from high ticket closed deal = successfully sold real estate for "bringing" on my own, on behalf of owner or agent, interested person who became a buyer.

You need an experienced short sale agent, which may be hard to find for the extra work on such a small price/commission.  

I'd be inclined to tell your neighbor to buy extra units for your multi & you'll split the take 50/50 & he installs & maintains the appliances.