Thanks for the feedback—it really makes me step back and think about this whole situation.To answer your question about the hard money loan: I went that route because I needed to close quickly, and hard money was the fastest way to secure the deal.

Some people make 4x the rent but squander their income on eating out, drinking, car payments, etc.

If anything is obvious like a solid proof of more people living in the house or signs of smoking in the house or if she misses even one rent payment then start the eviction process.

Put in your down payment and terms  in the calculator. 

So my inclination is to compromise her 50% request payment to 25% as stated by Mark and Martin. 

Health insurance payments, Health savings account lots of options. 

At some sales they will even accept payment the day of the sale during the auction if that property has not been sold yet. 

Glad we're secured, but nothing in rei is passive.

Interest payments hit my account as expected.

As a new fix and flip investor lenders will typically want to see 20% down payment and will be able to fund 20% of the rehab budget (80% LTC).