Hey @Andrew Watson and @Jacob Ramsey, @Lexi Teifke hit the nail on the head.

@Stephen Neto @Aaron Klatt hit the point pretty well.

Values haven't recovered in the area and she can't sell it without taking a hit. 

I could easily walk away with 100K in profit afterwards.My issue is, if I sell it, I'm going to get hit with a tax bill unless I dump the money into a new home, correct?

Also, an efficiency apartment.

So I would take a huge hit if someone decides to squat and I have to evict because not only do I have to hire a lawyer but I am getting $0 income from rent.

My family has recently purchased a home in Storrs, Connecticut, and I am looking for what to do with its enormous barn:                It is close to a big college campus and the winters hit hard. 

Take a vacancy hit (I took ~1mo to find tenant), and find the best quality tenant and current market rent.3.

Does anyone have advice regarding how to compile a professional, efficient financial packet to present to banks and lenders?

That's the reason why so many investors hit the pavement.