The value from learning on this investment may outweigh other factors and help me gain skills that will benefit me greatly for my second and subsequent investments.

However judging prepayment risk or default risk and then the subsequent events thereafter involves making some assumptions.

For an apartment I would make the doors bigger than the 24" and go with a sliding door at least 30" in the opening.Concrete with a broom finish, and extend the walls up for privacy from the adjoining unit, as well as add a roof.Omit one light and add a GFCI outlet in a waterproof box (to code).BBQ not allowed on patio so close to structure (not staged with a BBQ at all).That's looking at it as an offering without running numbers, but the 24" doors are not for people who like to eat a lot, and may repel a number of rental prospects who cannot fit through them comfortably (watch your floor plan for these skinny doorways).Ideally I would like to have a storage closet out here (4' to 6 feet deep) the length of the patio, but with this layout I do not see that happening.Just my 2 cents.

The subsequent damages to the interior of the house were thousands of additional Dollars.

Many managers/companies will start letting these important details slide/go unnoticed.

Subsequently, based on facts and circumstances, the plan can be frozen and continue to be sponsored under your name as a sole-proprietorship. 

@Niyi A.We use a sliding reserve of 7-10% (pending the age of the building and it's most recent retrofit) set aside from NOI.  

Don't ever lower your standards, not that who have much to worry about what I'm about to say, since you're only own one rental, but say you owned every other house or more on that block, or even several blocks on several streets, and you lose your back bone and let one tenant slide, and guess what you just did?

But if an election has been properly made under this section for a taxable year, the election remains in effect, unless properly revoked, for subsequent taxable years even though during any such subsequent taxable year there is no income from the real property, or interest therein, in respect of which the election applies.

If you don't think he should let the niece slide at all then that is more than fair.