I don't set this money aside like I do for Capex, but I do budget for it when I'm calculating the financials on a property.  

A great many of those people simply have not recovered financially and never will.

Between the annual reports and filing fees, and also the overhead necessary to maintain separation of assets so the corporate veil isn't pierced, the cost-benefit just might not be there.Might make the most financial sense (and most streamlined) to run her as a sole proprietor (Sch C) and carry appropriate and adequate insurance, which you should be doing anyway with an LLC. 

In the end, I will be financially free to live my life to the fullest, and they'll still be at the office.

I recently discovered bigger pockets and have listened to a lot of financial freedom audiobooks.

I agree it’s not that great but it’s not a pure financial loss either (it would become only if you lack sufficient liquidity to operate the asset as planned over the period).

Others want to see the property's income numbers for valuation and then borrower's financials.  

If you are a serious investor, you need a good lawyer to setup the correct structure for your current financial situation. 

.- Potential space to move laundry into upstairs bathroom closet vs basement - Can maybe get away with toilet/vanity replacement in each bathroom- Uncertain if painting or replacing cabinets with ikea type is worth it- Any in-ceiling lighting will cause a disaster with electrical since it is out of date- Repave/fix concrete front porch and side porch - replace/paint railing- Replace front walkway cement, or remove walkway and replace with right angled walk to driveway (may not provide ROI)- Tear down vs paint garage port in back yard

I would rather consult my owner financier and ask if they would accept a transfer of the loan to another person but that probably means you will not be able to profit as you imagine for such a transaction.