I would drop her like a bad habit.

Yes, some independent agents have different access to different carriers but with habitational insurance there are only a handful of carriers that specialize insuring rental properties.

And your disciplined saving habit makes you the perfect candidate to make some strategic moves!

As emphasized by David and the individuals featured on the show, networking plays a vital role in this industry.

I am a CPA so the taxes I can explain to her, she's just averse to the idea that she has to pay taxes at all, the fear of paying 40k for taxes on the sale of the rental is enough to keep her from having the ~ 160k remainder in her pocket or using that money to get her own home habitable.

(you can dig up the seattle times article,  I'm too lazy)FWIW I am in the process of closing on a new primary residence for myself in upper Rainier Beach  (2300sf 2 story mid century,  $430k, mid block on residential street, needs a little spit and polish, but totally habitable).  

I would highly recommend, Seven Habits of Highly Effective People by Stephen Covey or Millionaire Success Habits by Dean Grazio, as great books to create positive lifestyle habits and create a foundation of meaning.

It is vital you follow Fair housing laws.

It's been my experience that communication between the agent, lender, and landlord is the most vital part of this process. 

If you have disciplined habits and are committed to not going into consumer debt, I’d recommend buying a cash flowing asset that pays for your liabilities.