I had one file an adversarial proceeding against my company-totally bogus but I had to spend money fighting it in court. 

If the home's value went down 15% to $340k and then I defaulted, it would cost them about 10% of the home's value to foreclose and sell, leaving $306k of proceeds. $245k of that would go to the first, and would only leave them $61k back on their loan.

I guess your advice will be the best solution.In that case, just remind her that her options are to: Sell her Condo and add the proceeds to her savings to buy her next primary with all cash; or, just keep saving until it equals the amount needed to buy one, all cash; or, just buy one now for maximum $150k; or, CHANGE her philosophy.

If you talk to her and say, "You know, I think it's probably worth $175K after it's all fixed up, I think it will take me $60K with with all the known and unknown work, plus 6 months of my own time (@$4k/mo), interest on the loan, insurance, permits, etc etc, so subtracting that from the final value, I can offer about $50-60K." 

Sounds to me like your first move should be to sell your NJ rental and invest the proceeds somewhere more profitable.

Stuff just got real.First thing I did was insured it.Then I hunted and found someone to do the title work.

If it IS a separate bill in your area then yes, definitely include it as an expense, and the 'other expense' category would be a good place.You want to include ANY expense you might incur - I was watching a webinar last week from the archives and it was interesting how a couple things that I dont deal with; flood insurance, garage & water/sewer (tenants pay in my area) completely changed one of Brandon's deals he was looking at from pretty good to just break even. 

You have to take full advantage of the seven years you have until you'll have to start paying four-figure sums monthly for your own health insurance.

She never asked if it was ok and/or offered to give me the owner part of proceeds.

Then they'll leave during the summer when you can get plenty of demand anyway.Also, like you said, check with realtors, and check online for insurance relocation companies.