You have refrigeration, Air Conditioning, a smart phone, the internet, Air Jordans, two computers, take vacations, go to college, 37 flavors of ice cream, have 365 channels of TV (I didn't say they were worth watching ;-) health insurance, life insurance, fire insurance, auto insurance, home owner's insurance, SDIRA, 401(k), plastic surgery, viagra, fast food and can call the shots of just about anything you want to do or be.I grew up in a 790 sq ft house with 4 brothers, a cousin & aunt and my folks. 

You say she’s paying well below market so why not already have begun doing subtle increases right away?

I had to wait 14 days for her to come back and get her stuff (which she never did) so now I'm in the process of cleaning out the house.I'm sure there are some subtle differences to the law in Texas, but the previous owner of your property is now a squatter (at least that's what the legal term in Arizona is).

As you will be learning, all real estate is local, so getting the flavor of how things are viewed in your area is another first step before diving in.

If you plan to do any kind of marketing for this property, you'll find that you get sellers of all flavors, and the solution or exit strategy can be just as varied.Not too long about, we had six seller appointments in one day.  

at my college 2 or 3 years ago, living on campus was 3 or 4 grand a semester, and they had a mandatory meal plan for on campus students...basically around 15 grand a year was thrown away on crappy food that we hated eating (but did cuz we had to pay for it) and rent on a crappy dorm..that is how i bought my first house...it was cheaper to pay a mortgage and cook rice flavored with BBQ sauce!!

I have bought many many courthouse steps foreclosures over the years and nothing ruins a property more than cat pee.on the lock out I would have rush over helped them.. but on my way over I would have stopped at Starbucks and got them a coffee or lattee ( would call and ask what flavor they wanted first.. )  And why well 1400 dollars for a 2bd rental is a bunch of dough in most markets i would not want them leaving  :)  My comptroller finally would not let me talk with tenants..

Every the large institutions have subtle differences in their grading criteria.

They come in a few different flavors.

It's a subtle difference, but a meaningful one.I've got lots of background in the industry, and completing the projects doesn't worry me - but accurately predicting ARV's and therefore expected profit concerns me quite a bit.