Reason for mentioning single story 4plex is to have the ability for tenants to pay for water/utilities vs. it being an extra expense I accrue.

If she actually does pay every month, maybe it will gain you an extra few hundred a year....?

It's great that you're being proactive in ensuring you don't overlook any important details.

If you know a good CPA that knows enough about REI, please send me the details directly.

I don't know the LL personally - I'm hearing this story from my investor friend so there are likely details left out. 

Then you either buy other properties or put the extra money into other types of investment vehicles, such as S&P 500 or treasury bills or whatever.Now, if the $1 million is in a retirement account then you move it into a self-directed IRA and let your IRA buy the property.

I am not comfortable sharing more details in a public post.

We don't charge anything after the 25% and the entire pet fee would go to the owner unless there's extra cleaning. 

I don't know...if it were me, I'd try to find a way to make a little extra income and do both.

Both are different, one gets less money but less time/hospitality/upfront costs; another gets more money, with more effort, more hospitality, being more available for guests upfront, plus extra expenses on the front end.