Hard to say without seeing condition, but the numbers look great.  

I wanted to present a thorough and honest look at what is involved in acquiring and flipping a property in the condition this one is in.

The roof was in very bad condition (and the seller didn't want to fix anything).

I mean it was because of the “unsafe condition” of the rental dwelling and not the massive quantities of alcohol they imbibed that was the cause, right? 

You need to verify what condition it's in and what the seller is claiming for yourself. 

Also, my target is generating enough income to live really well, not just survive.  

Certainly you can shop the house to investors, check Zillow, get two or three realtor opinions, and with the feeding frenzy that exists, someone else may see upside in being able to make a profit for putting in the efforts, and might pay you a retail price for the current condition. 

If not, you should allow her to break the lease and potentially help her move (make the seller give you a credit or have them handle as a condition to close). 

What is the condition of the property?  

Obviously, I do want to maximize my returns, so I looked up rent rates in the area on multiple sites, and they are in the 1150 -1500 range depending on the condition of the unit.