I have written a letter out, can anyone tell me if this sounds good or if you would add/subtract anything from it?"

You don't want to celebrate getting rid of her (addition by subtraction) only to get sued a few months from now.

In order to fully defer all tax you must purchase at least as much as you sell - that means the gross sales price minus only the costs of the sale and before the mortgage is subtracted.   

If you do sell a property, its the basis you subtract from your net sales proceeds to compute your gain.

Your basis is not taxable, so subtract that. 

I'll describe a simple hypothetical case:  If the gross collection was $1,000 in one month, no fees were subtracted and the split terms were 50/50, the amount due the lessor would be $500. 

They will take a $1,000 rental, subtract their $600 for the mortgage, and claim they are cash flowing $400 a month. 

I subtracted the rent owed and all the repairs and cleaning from the deposit and they owed me about $3000.  

Your daily rate certainly should be subtracted from future payments if you return to live there.Now with that said, many ins policies offer "loss of use" and It would not be unreasonable to ask for the DIFFERENCE.

I would subtract the cost of mailing the 2nd time.The money is not yours and you should try to return it.