To even consider before you start construction you would need an executed lease with a large non-refundable deposit upfront to show the tenant is serious and committed to the sight.If this tenant is not larger corporate but smaller individual or group there could be serious risk to building the project and then the tenant ends up falling out before taking occupancy.

This isn't meant to be preachy but others might come across this post and wonder how to prevent it.The two biggest areas of concern here are...Your loan amount. 

Sign contract with initial offer amount as 60% of ARV - repairs - subject to inspection and appraisal.

There is also a fair amount of entitlement that you may encounter as well.The well-maintained and managed properties with good tenants at market rent are almost never for sale. 

The title company will pro rate rent and deduct deposits from the sellers net proceeds.

@Frank Cannata I hate cash and money orders - those require me to go to the bank as I can't mobile deposit either. 

The LLC will give some protection, but a healthy amount of insurance would also be an option, especially for your partner.As for forming the llc, that is easy enough to do in Georgia - it is $25 for the name registration, $100 for the filing and then $50/yr for renewal.https://georgia.gov/popular-topic/corporations-llc

I don't feel comfortable to wire the fund and deposit to the title company out of my area before even find out if this company is actually a legitimate operated title company.  

Hi Amir, the 60k deposit is just the starting point. 

If she wants her portion of the security deposit back just make the new tenant put the same amount up.