You hire an experienced bankruptcy attorney to file a claim against the estate for whatever amount you are owed.

Should I file a small court claim because she owed the rent and broke the lease without a 60 day notice (written in the lease), or should I send it to a collection agency? 

It is difficult for me, however, to understand her claims that her health is being adversely affected by living in a home that I know was clean and ready for a new tenant and I never was informed otherwise.I don't want to keep her as a tenant if she proves to be a difficult tenant. 

Not to discourage you, but we live in a shark infested investor area with a lot of transient tenants (higher ed/ medical) that drive investment prices. 

I know people that manage their own vacation rentals and claim to "net" $6,000 a month but don't account for the 40 hours they spent answering calls, booking reservations, greeting guests, handling maintenance, or whatever else is involved. 40 hours may be an exaggeration, but you get the point.

Anything you are "paying" yourself just becomes income you have to claim personally.

that cost a lot of money to do usually.. and an attorney can get in big trouble filing one on a baseless claim..  

He claims he doesn't have 10,000 to invest in a 200k condo downpayment (me providing the other 10k with a FHA loan) because 1 million dollars isn't enough of a nest egg to loan out 10k. 

My question or request for help is as follows:Lenders right now do not know how to treat my HUD Partial Claim second lien (the amount that was not paid during forbearance), and so far the lenders I have spoken to would only be able to treat it as a cash-out refinance, instead of Rate and Term. 

They were gone in 10 days.As far as not putting her on the lease goes & then claiming trespassing, all she has to do (my state laws) is get some mail there & she has tenant rights.