@Ethan Ray @scott trench mentions this in his book Set for Life, actually.My wife and I haven’t altered deductibles like this, but we’ve also owned primary and rentals for 5/6 years like you have.

That’ll give you an idea of what is what and you can alter your strategy from there

Obviously, this isn't the only path to success in REI, but it is one path.Also, as I mentioned in some of my posts, college can provide a lot of skills and connections that can ultimately be translated to success in REI ( you can see my posts for some examples).

The current tenants have been in the unit for over 10 years with a lease that has never been altered and no rent raises.

Mixed use is going to require a commercial appraisal that uses the income approach for value and the income of the surrounding market shouldn't be much different from the original, so spending too much on renovations may not translate into increased value and certainly not a sharp increase in value.

Hind site being 20/20 I guarantee any gift I left for what turned out to be a bad tenant would never have been appreciated or altered the outcome of our relationship in any way. 

If it translates I can share some areas and assets here in WI to begin your out of state search.

It sounds to me like the reason she wants you to send the form to her, and not to the agency directly, is because she intends to alter the form after you've given it to her and before it goes to the agency. 

The only way you can look up distressed properties is by mortgage failures and that doesn't necessarily translate to distressed properties in the physical way.

What that translates to to you is a bunch of distressed neighborhoods with a very difficult tenant base.I've made millions investing in distressed housing, but I also see investors lose their shirt doing the same day in and day out.