Its better to walk away from a deal than to take any deal which could turn bad.I usually track how many deals I'm making and how many I win.

I also understand that a single family homes have a better chance at appreciating, but am hesitant to trust the appreciation we have been seeing to continue over the next few years which again takes me back to a safer bet in condos.Scott

Betting on appreciation is something that may never come to fruition and now you've wasted all of that time and money for what?

If they decide to move in fear of losing their voucher, it will be a win win situation for both of us.

BUT I think you win the award.

There have been some big employment wins at the airport and Loves Park is growing.  

Is it more important that you "win" the argument or that you collect rent?

Your best bet is to figure out how to pay those taxes.

My main focus is to help her out but if there is a way I can get a rental property out of this it would be a win win.

 Steven, it has a low ROI because you have full equity in it, i wouldn't sell it. the property cash flows more than an average SFH ( average is about $400, some even get less or more). the ROI will change once you pull the money from it with a HELOC or loan. lets say you pull out 75,000 @ 4% HELOC ( usually they are based on 20 years ) your payments will be about $450 / month, you would still cash flow $200, the property is still yours, you now only have 35,000 equity in the house, your ROI will change based on the drop in equity you have in the house, and maybe the house will still appreciate ( which i never bet on) but know you can buy more property that will cash flow. from what i am guessing there are probably houses that go for 75,000 where you are buying, down payment would be 15,000, you could buy 5 houses with that 75,000 of equity you pulled out. just something to think about.