I would recommend consulting with a tax professional to gather more details to confirm this based on your situation.

@Tom OchiengI would reach out to a real estate attorney for specific advice on this situation since you already have one tenant who is being difficult.On a side note, when I have inherited tenants, I have been most successful when I have provided longer non-renewal notices, like 60-90 days, and offered to assist with moving costs.

I see many situations where one generation wants to buy out a prior generation or, more typically, siblings.

A HELOC felt like the right approach, but I'm learning it's pretty impossible to find a lender for my situation.

Geez, I'm just trying to get a second look at my math for the current situation.

https://retipster.com/164-arturo-paturzo/Your situation reminds me of this podcast.  

Hi Joshua,It sounds like you’ve got a solid situation—congrats on positioning yourself so well!

I feel like I've dealt with every time crazy situation there is here in Chicago with squatters, evictions, drug dealers, etc., and I still love Cook County because I have a solid team and underwrite deals properly.I think @Paul De Luca nailed it on the head, though - it seems like you are quite risk-adverse, so maybe given your risk tolerance, it's not the best idea, but if it were me, I would not think twice about it, and find a rock start property manager who knows exactly how to vet tenants.

Does that operational aspect have to devour all cash-flow, no not necessarily but it could, all depending on situation specifics right. 

I was hoping some folks might be in a similar situation or had a similar experience and might be able to share.