House is worth 260k and we owe 200k on it.

Improving grading or having downspouts drain into pipes that move the water away from the house often solve the majority of issues. 

She houses a nurse in each home along with adult patients that need living assistance due to mental retardation.

If you're looking for a more landlord-friendly market, I personally recommend Columbus OH.

Cash flow is constantly promoted and pushed, and often, the personalities lack long-term experience, so they can't talk about the best reasons we should be investing.  

Personally I would just get the proper licensing and insurance if I wanted to manage properties for others. 

I take a picture of their driver's license.I ask for phone numbers that accept texts and any alternate land or business phone numbers.I ask for the names and birth dates of anyone under 18, and ask if there are any service / emotional support animals, together with their names and breeds.I also ask for personal references, previous landlord contact info (and length of time there), employer contact info (and how long there, together with earnings), as well as the name and contact information for their manager / boss.

You would need to submit a material list to a local supply house, usually they require you to open an account and they ask for a TIN for a line of credit.

It has two units, but the house is only a legal one family, looking to possibly purchase it and live in one of the units and rent out the other, one as a Airbnb or just as a regular rental would need to get some kind of financing to make this purchase by being only a legal one family a conventional mortgage I think would be out of the question.

I personally use a company called swift permits.