You have a "sizable" capital fund with which to use to leverage your future in commercial investing (and I would assume give you some time) to properly survey the lay of the land and find out which interests you & why and which plays to your strengths & weaknesses. 

Missing collar ties need to be installed to provide proper attachment for the upper sections of the rafters in theupper attic to prevent sagging of the roof structure.

Then, you must budget properly, sometimes without the benefit of having a full idea of what may be lurking behind those walls.

As far as I know, it's still illegal under federal law to house a growing operation without proper licensing and the funding of one.

@Melanie KentWhat is your analysis on this dealLet’s see the numbers and margins....Cash flow - cash on cash return - Net Income - expenses - I mean these are basic numbers that if presented properly - may provide some incentive for other folks to collaborate a deal.

If you get the "stay" and the property is under court order, the court may require that the proceeds be placed in the registry of the court until proper ownership can be determined.

It helps to make the paperwork more clear by setting up an LLC for the partnership and using the proper loan documents (lawyer can help with all that).

I would leave her on the M2M and follow through with a proper 30 days notice when the time comes. 

It will need to meet all fire and safety codes per your local building codes.Done properly a secondary unit in a SFH is the best method to generate positive cash flow on a otherwise underperforming asset..  

As previously stated, proper tenant screening and management (online bill pay) will resolve most if not all the issues you assume "requires nerves of steel" before they even start.So to reiterate, your advice is to do nothing and pay $3500/mo plus living expenses on $30k PRETAX income.