If you need financial help, ask under the "Finance, Tax, and Legal" forum.

The tenant claims he's under financial stress due to being out of work after an injury and is struggling to get the funds together for the funeral services.

I do this actively networking with other investors, sharing content on sites like Bigger Pockets and Think Realty magazine, and building relationships with referral partners like wealth managers.Finally, you have to have the best people working with you from your lender partner, to your property inspector, to your property manager, to your insurance partner, and asset protection and business attorney.

That can easily become financial suicide. 

There are hardship withdrawal provisions and others that can be exercised if you meet the requirements. 3) If you have access to a workplace plan, like a 401k, with a Roth component, you can consider that as well. 4) If you setup your Roth with a Self-Directed IRA custodian, they can allow you to invest in assets like real estate, private lending, private equity and other alternative assets. 

Can I even be financially independent in this situation?

That typically results in a higher payment and an open end mortgage (Credit card) versus cash in the bank that can act as an Asset and PITI reserves where a Heloc cannot.Feel free to reach out if you have any questions, I enjoy helping and talking REI.

I have worked in recovery, but currently am retired and have rentals I would like to possibly rent to Oxford house- or possibly convert into sober living if it makes sense financially.

I am wanting to start real estate investing to become financially free in the future.

What Im looking for with REI.... is to find financial freedom, to build generational wealth, to bring my family together; my brothers,  my children, and their children into a business Im not only passionate about, but proud of.