If so, that could complicate things.If it is worth $85K as is and she can afford to live there and is happy, then I'd just leave her, especially if siblings are involved. 

So, if you want to ensure that you have positive cash flow, you need to ensure that your monthly loan payment is less than this monthly NI amount.There are more complicated ways of determining whether you'll have positive cash flow (stemming from positive leverage) using the cap rate of the property and the loan constant for your loan, but the above is the easiest way to start.

Streamline yourself so you don't complicate your life.

You are just putting unnecessary stress on yourself.

Some varieties of real estate investing have little or virtually no risk and others are more complicated and carry more risk.

It was a bit more complicated for the taxes but your local CPA should be able to handle it.  

For a residential, that gets depreciated over 27.5 years as per IRS, so if you divide by 27.5 you'll get your annual depreciation =  $5,454, let's round it up to 5,5K[Again, this is simplified as things get more complicated in the first year when depreciation is prorated and get even more complex if you accelerate depreciation with a cost segregation].So, now if you have positive cash flow of, let's say 10K, you''ll have to subtract the depreciation and end up with a taxable rental income of 4,5K. 

A secured note is not a complicated process.

If there are complications, then the sky is the limit. 

(Count 1) Regarding the "paid off" loan... completely possible it was part of a refinance in 2016 (Count 2) and shorted on the payoff, resulting eventually in unnecessary insurance and taxes being advanced (Count 3), driving the balance up, and eventually leading to the foreclosure.The rest of my post [in the wrong thread] is about following through on a title insurance claim and letting the insurer pay for the defense.