They will get completely passive income off the property without carrying any risk, dealing with tenants, or having to worry about maintenance/repairs, capex etc.

@Fahren FonacierNo, just carry adequate liability insurance and you'll be fine to get started.

So she spend $4k per month more than she’s making and that carries her another 8 years ($400k/$4k/mo).

I would carry the same vinyl upstairs so it flows throughout. 

There are HO policies that carry endorsements to rent rooms or garages/attics as well.

There is far, far more to worry about in the upper echelons of the Good Ole USA government that you aren't thinking about, than anything Russia will ever throw at us.And we will survive and carry on.

Are there any lenders that allow seller carried second mortgages for the down payment anymore?

Carry on. 

Just carry adequate insurance and worry about an LLC when you are bored enough to take on the administrative load of having one.

High ratio mortgage (stuff thats below 20% down) requires insurance, this means the banks carry them at nothing since the risk is technically covered for them (this is a systematic risk, but that is a different topic).