Some have described it as investing with training wheels.

The scenario you have described seems like she is a difficult tenant and will continue to be one going forward, especially if she has her own attorney. 

You are paying $89,000 for a house that likely needs 5-10k of work based on what you described, and would be worth what you have in it.From a long term hold perspective, you need real numbers. 

Maybe getting a committment from the lender that describes how quickly they can close will help them.

This is why I describe this situation as mismanaged. 

Then comes my 2nd Deal which I will describe in detail and the lessons learned.I was open to a 2-4 multifamily or single family as my 2ndinvestment.

My question is this:In the scenario that I described, would it make sense to have all 3 tenants as well as the co-signer fill out a mysmartmove application?

There are many books written on landlording, so I'm not going to describe it here.Lending and landlording are two very different things. 

Ask for a discount there and you will be escorted from the building.I guess I'm a bit different that what Levi described, in that I draft and review syndications AND do LL/T law. 

(use any investment calculator for the latter).You might find out that saving 100K in mortgage repayments costs you a couple million dollars in opportunity cost.Again there are situations where mortgage paydown makes sense, they are just hard to objectively describe to anyone who is trying to grow a portfolio of buy and hold rental property.