The tenant is a lady who has lived in the property for 25+ years, happy where she is and will probably stay there until she moves on to the next world. 

Unfortunately, it was an older lady and she did not like that I declared the interest, which she had to claim as income. 

Unless it's in an area with 15%+ annual appreciation.Also, that capex calculation is wild.

During the tour of the house, the lady mentioned that the house was given to her by her grandfather.

If you're looking for easy 1% rule with 20% though you'll have to look out of state for sure, or get some wild deal off market that you completely stole from the seller.

It was the wild west back then and I haven't seen consumer demand quite that crazy, but I have seen builders throwing houses everywhere they can like demand will never go down. 

I've met a lady who has a master lease from a hospital where they pay her 10k/month (regardless if it's occupied) and they house patients there.I would find out from your HOA  first what restrictions you have in terms of renting.

That way you have some money coming in at all times.If you had a contractor that had a large enough crew and gave you a discount for doing both units quickly and at same time then it would be worth wild to just get them both turned around as fast as possible and rented at market rents.I self manage all my properties.

So I have a deal where a lady has put a buyer under contract and she says she common law married to the decease guy.

The landlord is upset because he obviously meant three times a month to mean three nights a month, and your friend seems to have decided that what the clause in the contract she signed really means is something more like three weeks a month.What your landlord signed up for was a single lady living alone.