How difficult or easy has it been to get tenants secured in that area?

Which one is more appealing - continuing to own the house or the security of that much cash/liquidity?

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Whomever will do her taxes when she does sell, (can be done prior, and should be asap) will have to submit a change of accounting method form .....I've had multiple clients that never took depreciation and when they sold, we had to fix it...doing your own taxes isn't as easy as some tax software companies make it seem 

It isn't having paid off properties that offers security, there are still taxes, insurance, maintenance and management involved. 

But the bank still treats it as a secured debt.

Renter's Insurance is a cheap date for the tenant; it protects their security deposit and assets. 

So, your focus may need to pivot from high rental cash flow to little to no cash flow as a rental with an appreciation upside.I would recommend taking your $150K to $200K and securing a solid equity position in something that will cover its expenses and maybe provide a small cash flow, but then is poised to appreciate nicely over the course of the next several years. 

As Jay and I have warned, WAY too many of the people grasping to this SubTo method SHOULDN'T do it.

Depending on your debt to income, you might have to sell or have an executed lease to secure financing to buy the second home.