@Christopher Dunson One consideration is that if this isn't an established business/person, your recourse could be minimal.

With the rent covering interest only payments on this kind of loan, I would only have to cover minimal repairs to get units rent ready (prior to getting them occupied if they are not already).

I will have to be proactive here and minimize my exposure to missed payments. 

I would like to keep using a cheap, larger format tile (so that we minimize grout lines) with dark colored grout, but need some fresh ideas to modernize it a bit. 

She may have minimal expenses.  

The coverage is also very minimal.  

Is $110 an ok cash flow for a property that will require minimal work on my behalf? 

It breaks even and provides minimal net income, which is not worth it in this town. 

Sure, do any business long enough you will get burned, but you can minimize risk. 

Why take all the risk, for such minimal returns?