You also pay all your bills and any cash needs from the HELOC as well. 

I'm guessing it's out because she failed to pay the bill (utilities are in her name), but PG&E of course won't tell me anything.I've sent a 3-day notice to Pay or Quit. 

Thanks in advanceYour first eviction should be with an attorney so it's done right.When the attorney starts the process, you may find that the tenant moves out or pays the rent to avoid court.

And if something goes sideways, your just paying a mortgage/rent expense that month like everyone else.

Sometimes they're suspended for not paying taxes or other reasons.  

Worse case they pay taxes on the money they get to keep.  

Until it pays off.

Based on your cash flow you aren't in a position to pay down the principal aggressively.

They wanted us to pay $7,000 to address these areas.

Have you had a lot of issues with people paying rent?