To minimize self-employment/payroll taxes, an S-corporation is might be the right choice. 

It was your tenant's choice to sleep in a hotel instead on the first floor where it is air conditioned.

MakIng and appt with a local real estate Atty would be my first choice 

My first choice (as we recently did this ourselves) would be to ask the family to carry the note, interest only, for at least six months so you can get through the cleanout and renovation. 

Otherwise IMO West Coast LA, would be a good choice as it is where East meets West in the largest market  ( most future growth)  and the rest for talent attraction reasons maybe.

First choice would be somewhere in between. 1BR, over 800 sq ft if possible, under $1000 if possible.Right now they're renting from us, 2BR $900, 1000 sq ft.

I would expect a full month payment on the 1st and if she moves out early it would be your choice to offer a pro-rated refund.

I’m not positive that’s the best choice though.

Living in a motel is a personal choice, and frankly it sounds way better than sleeping on Mom's couch, although that also wouldn't be a reason for a landlord to decline an application in NY. 

It may limit you on you choices of where of the type of place you want to live depending on the market.Sfh and townhomes also give you a great opportunity to learn to be a landlord without having tenants knocking on you door.