The rental income from the first home will pay for the mortgage/monthly costs.  

My area is relatively low crime, but had one place that someone broke a window to get in.... probably a homeless guy looking for a place to sleep....got scared when neighbor turned light on.I put in a SimpliSafe unit... portable, easy to set up, multiple options- you can use a webcam and get alerts on your phone and future tenant can pay for full service if they want. 

But you need to educate yourself and know exactly what the remedy is, or you may pay a huge expense for nothing.Any company that's doing a bid will video your line (no cost) so they can properly determine what the issue is.

If we can't find a solution, I think she will be OK with me adding her property under my own account, and then me paying her out monthly.

I have sales reps that know me, free delivery, net 90 billing, constant product updates a bullet proof warranties.

A tenant not paying has nothing to do with us either.

If transferring the property to an LLC, be mindful of the due-on-sale clause, and note that an LLC itself does not offer tax savings unless electing S-Corp status, which is rare for rentals.To maximize tax benefits, consider cost segregation, bonus depreciation, and short-term rental (STR) strategies, which could allow you to offset W-2 income if structured properly.

if they are pressuring you like this.PLEASE watch the American Greed Episode on Remmington Financial  .not saying these guys wont or don't fund of course.. but when I do my deals with my banks its common that I pay for the phase one and the appraiser directly..  

and are you looking to walk away with cash or simply refinance (meaning paying off) what you owe? 

That way you can take advantage of the tenants paying down your mortgage and the appreciation of the property .Best of Luck.