Is there any advice you'd give me on our particular situation:Husband and I are 50-something "millionaire next door" types with no debts and significant savings.

Here in Colorado, there are certainly some cash-flowing STR properties, maybe 10-15% cash-on-cash types every once in awhile.

Type of Market: Is it a declining market, is is suburban or is it rural?

This type of classification is identical to that of a vehicle.

This property has 4 bedrooms and only 1.5 bath, which I worry is not ideal for this type of living situation.The house is a split ranch with one car garage and 2 car driveway.

This is something to consider with handyman types as well. 

If so, what works or doesn't work for you there in terms of property types?

Also look at the type of electrical wiring as that can be an expensive repair if it needs to be updated.

Option one she threaten to do a loan modification.Option two shoes trying to threaten bankruptcy.Just wondering for those that I’ve done subject to deal what type of things to look out for or should I not even worry. 

Depending on how well written they are and the "then current" financial laws and the state & county the property is in and the type of lawsuit and the mood of the court and the expertise of your attorney, you can mitigate most risk but not all.