Hey Arron, I'm sorry for your negative experience!

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Negative.

However, it would be cash flow negative if I were able to assume the mortgage or buy it with 20% down at the market price. 

I don't find too much value on this aspect, the valuation models are all the same, and your data wouldn't be differentiated.

From a legal aspect, 100% of the assets is real estate property, regardless of how we look at it for tax purposes.

Are there specific pros and cons I should consider when it comes to refinancing, forming an LLC, or even continuing with the rental given the negative cash flow?

It is usually the people who the landlords delegate them to.Legal aspect is a good feature, but no one will rely solely on that.

It may be overwhelming to her to think about moving but you might be able to easily make some aspects of it easier depending on what feels heaviest to her.