I am going to have a heart to heart with the tenant and explain the rise in costs for me as a new owner. ( and since she started renting )  She wouldnt be able to rent anywhere else for less than what I would like to raise the rent to... so im sure she will be cooperative and I dont want to put her out either, Im certain we can reach an amount that will be helpful to us both, and raising to that amount slowly allows her to adjust.     

Yes, I whole heartedly agree!

And 3 weeks later when the alcohol wears off, and a heart shaped box of candy appears with apologies--he's back in the saddle.So she wants to control things and have him taken off, you have a contract with him also, what if he wants her taken off and booted to the curb.Cowboy references because  I like @Nathan G.'

Well, I've searched all over the internet and cannot find a business owners policy that would be made out to an individual. unfortunately and due to not having a heart to heart with my new accountant, I have not created any type of entity as of yet.

I think these properties are a lot like mine and I personally wouldn't be interested at a 12...These properties are not for the faint of heart...Occasionally you will get a meth lab etc, they require lots to get in rent ready form.  

To be honest not that safe rent as Section 8 here is so pick that they will take the voucher away on a heart beat.

The Operating Agreement is the heart of the business entity.

On the one hand we have buyers of new (or replacement) houses who must have loans in order to buy the home they want.In qualifying for the new homes, they must somehow dispose of their old houses.When money is "tight", the sale market slows down, placing both the builders (and their lenders) and the buyers (who must first sell their existing residences in order to qualify for a loan) into a quandary.At the same time, a portion of the market (investor/speculators) willing to absorb the surplus houses is prevented from doing so because of the same shortage of mortgage funding.The solution lies in creative financing techniques.Read on.The following pages address themselves to this parallel dilemma of the market, the builders, the lenders, the buyers, the sellers, investors and speculators.For the agile investor, CommonWealth Letters have a slogan: "THE GOOD NEWS IS THAT THERE IS BAD NEWS".In so many words, what that means is that in tough times, when credit has dried up the markets, only those who have cultivated buying, selling, fixing, management, negotiating, and financing skills survive and prosper, but, when we have prosperity in the United States, it is possible for ANYONE to succeed.Our markets are so vast, our citizens so affluent, our institutions so liberal, that practically every form of commercial activity has a theoretical and statistical chance to succeed.The problem with that scenario is that good times cause millions of would-be entrepreneurs to enter the market place.Success becomes a very competitive venture in which those with true ability are virtually in-distinguishable from those without the skills and knowledge normally required as a prerequisite to prosperity.Thus, our endeavors receive only average returns even though we might be able to contribute above average talent, energy, drive, capital, and imagination.One of the principal reasons for this is that venture capital abounds in good times.Lenders woo the untried, unskilled, untalented in an effort to place the ever increasing funds deposited within their coffers.Interest rates fall as money chases borrowers.The costs of doing business are reduced correspondingly as the cost of money falls, (then they are raised again as the costs of labor and materials escalate to meet increased demand).The ebb and flow of money and production instills a cyclical rhythm into the economy; and just as Winter follows Summer, so must hard times follow the good.In hard times, the reverse of the above holds true.Slowing economic activity causes businesses to retrench.The faint of heart drop out, others cut back on costs, materials, and labor.They slow down their payments to the banks.They with-draw surplus funds to meet current expenses.Bankers, seeing their reserves beginning to diminish, are faced with increasing loan demand from borrowers who foresee less and less certain profits with which to repay them.Interest rates are increased to meet market demand for money.Loan terms are stiffened to discount increasing risks.Money becomes tighter and tighter.Now many of us who have been waiting on the sidelines begin to see opportunities.Those builders who need buyers, those buyers who need new homes, those speculators who are stretched thin with negative cash flows; throngs of those who knew how to prosper during times of business expansion become listless and drift during periods of contraction.Our opportunity derives its strength and vitality from our being able to function in the market place without reliance on any financial institutions.Our competitors, who in prosperity were able to divert many opportunities to themselves, swiftly find themselves "on the ropes" when their lines of credit are withdrawn, because the key to their vigor was easy credit.Without readily available financing, they become ineffective.Phrased another way, those who choose to depend solely upon institutional financing will always find themselves trying to make a profit in a competitive market situation.They will be "in-phase" with millions of others, condemned to mediocre success, dependent upon good times to afford them enough of a living to be able to weather the slow periods.On the other hand, THOSE OF US WHO LEARN HOW TO PROSPER DURING HARD TIMES, WITHOUT THE HELP OF THE BANKERS, WILL BE ABLE TO OPERATE IN A NON-COMPETITIVE, PROFITABLE ENVIRONMENT.

No, it does not.If you sincerely have your Mom's best interests at heart, refer her to a fee-only financial planner in her area who has quality credentials, like a CPA/PFS, the CFP, or is a member of NAPFA.

If your tenant cannot comply with the terms of her lease agreement, she needs to find a new place to live. 3) You have a beautiful heart.