Frequently SFH owners will think the cash is flowing well when they're not allocating an expense for the new roof or to paint the outside.

Only retiring with rental property is a asset allocation risk.

Woulda Shoulda Coulda allocated a bigger portion of my investments to cash flowing real estate when I first started out (2010).

Since 1/6 of the property is her residence then you could probably allocate $250,000 of the sale to her primary residence.  

Via the IRS:Cost segregation studies are most commonly prepared for the allocation or reallocation of building costs to tangible personal property.

Just invest that money to diversified allocation in a different sector, but get your accredited investors first.

Traditionally the larger and international groups have stuck to Commercial Office and Industrial, they are now becoming much more comfortable with Multifamily as an asset class that is worth allocating serious capital towards.

As a partnership, the income and expenses will be allocated to each partner in accordance with their share (or as given in the partnership agreement).

Your property management company should have all the strategies and systems in place to keep your property occupied.If you are self-managing from out-of-state (typically a bad idea) then you want to make sure that you work with a local "leasing agent" (depending o  the size of the property) and you have a solid budget allocated for marketing and ideally get to the point where you have a waiting list.

I would within the timeline of your states guidelines send a letter accounting for how the deposit was allocated.