You want to have a strong balance sheet when getting into real estate.

How do I balance these two scenarios so I'm getting what I'm worth, but also creating value for my investor taking a risk on a first-time flipper?

There is no mortgage or loan balance.

Have you shown her that buying in the right location and proper screening of tenants will reduce the chances or "tenants trashing up the place?"

At that point (without a looming deadline) I can begin investing properly.  

If you have never been through it before you should hire a competent  attorney, however once you learn this process it can easily be  handled by yourself assuming your property isn't held in an LLC.Although the laws are very tenant friendly, the law states that a Landlord is entitled to receive his/her rent on time and in it's entirety every month - assuming Landlord is doing their part of courseEvictions for things other than non payment can get tricky as proper notice is required and a host of other things.If you have questions please feel free to PM me.thx and good luckChris

However, if you choose the latter, the encroachment and any other matters that a proper survey would disclose would be excluded from coverage. 

Please help me understand the most likely and the most proper expectation:1. should i rebuild - the house is in TX, i am in NY.

If in 10 years the rate is 11%, you will have paid down your principal balance significantly and likely inflation will have happened, so your rents will have increase (and expenses), resulting in still solid cash flow. 

As a layperson, it would appear to me that if you were to attempt to prohibit a properly licensed medical marijuana tenant from his/her drug in any way, that would be discriminatory against a certain class of people.