Even though I am not paying interest on that $25k, but, just knowing that it is there makes me feel "uncomfortable" and I still need around $10-15k to finish renovation. 

You should work it in to your rent that you cover routine repairs and maintenance. 

It would make me uncomfortable.

What types of routine or emergency maintenance will it need (water leaks / exterminator / smoke & CO2 detector maintenance / air filters / gutters / outside maintenance / paint / flooring / refresh between tenants, etc.).

If you're going the umbrella insurance route, make sure it will cover you for several things including just the routine slip and fall (like mold or earthquake).

And she felt uncomfortable and unsafe to live in my house. 

What time do you wake up?
What do you do first?
Does your morning consist of any of the following?:
Meditation
Exercise
Breakfast
Reading
News

Thanks!

Additionally, a new lease must be signed prior to the lease expiration in order to avoid higher month-to-month rental charges.Please email your decision on whether to renew and I will prepare and email a new lease for you to sign.I hope that you continue your residency with us, but if you do not wish to renew the lease, we can provide a copy of the move-out instructions.Finally, I plan to conduct a routine annual safety and maintenance inspection on XXXX.

If it means me getting uncomfortable...

If that makes you or your wife uncomfortable, you could consider a property manager who would be the contact for the tenant and require all property communication to go through them.You need to be well-informed regarding laws in your area.