It is our hope no one in Blue Metrix is a victim of such an aggressive business tactic while part of their management team faces such a difficult health challenge.

Then rent the bigger home out using a property manager, allowing her to possibly cash flow and maintain that asset and let it continue to grow in value.Encourage her to consult with a CPA or tax attorney to explore the best strategy tailored to her situation.

I already have the market in mind (Birmingham, AL) where I’ve purchased a couple of SFHs and have a solid team in place (contractors, property manager, etc.).From what you’re saying (and I’ve heard this from others as well), it sounds like the preferred approach is to buy entirely in cash (covering both the property and rehab costs) and then refinance afterward to speed up the buying process.

Negligent forest management, drug addicts, or illegals? 

I am licensed agent but work for an investor doing grounds management.

The loan is with you, not with your tenant, so none of that means anything to them - in fact because you live in one unit and it's under 4, if you were self-managing you don't even have to abide by fair housing laws (at least on the federal level). 

These homes were built in 2016/17 and I've managed/maintained them myself.

Cash flow can be great if you manage it well and keep occupancy rates high, but factor in the added costs of management, cleaning, and potential vacancy dips.

It would be far better for you to join NARPM - National Association of Residential Property Managers SE Virginia Chapter and join as an affiliate. 

Using a HELOC or home equity loan on your personal home could be a good option, especially if you can secure a low interest rate and manageable terms.