Your problem isn't execution, you just need a better strategy.

If you get the "stay" and the property is under court order, the court may require that the proceeds be placed in the registry of the court until proper ownership can be determined.

It helps to make the paperwork more clear by setting up an LLC for the partnership and using the proper loan documents (lawyer can help with all that).

I would leave her on the M2M and follow through with a proper 30 days notice when the time comes. 

It will need to meet all fire and safety codes per your local building codes.Done properly a secondary unit in a SFH is the best method to generate positive cash flow on a otherwise underperforming asset..  

As previously stated, proper tenant screening and management (online bill pay) will resolve most if not all the issues you assume "requires nerves of steel" before they even start.So to reiterate, your advice is to do nothing and pay $3500/mo plus living expenses on $30k PRETAX income.

Get a good contractor and factor in permits (the city knows it has had a fire) proper remediation and rehab. 

Unfortunately, there are too many medical professionals that are broke because they haven't properly managed their money and assets over time. 

I have systems for cleaning, staging, quarterly/annual maintenance, inventory checks through Properly. 

They might not code the expenses properly or do not know how to maximize profit and have to constantly rely on a CPA.