It's not a natural posture, but I think you should get into this to disprove your initial optimism.

Purchase price: $260,000 Cash invested: $65,000 Beautiful and quiet upstairs unit with open floor plan and vaulted ceiling for RENT.Spacious 1 bed, 1 bath home, lots of storage and full-size laundry in unit.Large kitchen with natural light, Jack and Jill bathroom, private deck off living room.Large bedroom, park-like views.1 car detached garage and 1 dedicated parking space.

Is there any way she can create cash-flow in 10 years that can supplement her rent and expenditures by using her $28k she has saved?

My goal is 10 SFH, as I'm just looking to supplement a $3,000 a month pension (inflation will slowly drain its buying power, so turning to real estate to combat that effect) that I'll start drawing from in 2023 at the age of 53. 

Just trying to point out there is in fact two sides of the story, and that it is usually the lack of money in the deal (nature of the numbers) that truly causes the problems.

Also, I am guessing the home was not connected for natural gas and that is why you decided to go with propane heat.

Everything is going to hinge on the nature of the part being rented and how your accountant has set it up.  

That is just the nature of rental properties.

Higher down payment, naturally. 

Some areas a just naturally more expensive.