But the ability to add a legal, rezoned studio in the garage might make the deal a little more appealing.  

In terms of credit or whatever, I think more importantly you'll need to show your ability to service the debt - i.e.

Portland is a great place I worked up there for years and it would seem you would have a great op for maybe a air bnb or even a room rental property depending on the location and the ability for college studentsI'm in a pickle myself I bought a rehab property and completely gutted it with all new everythingjust need the money to completegot it rented for a screaming deal-650 a month and I'm paying all utilities at leat its kind of making the paymentkeep your options open and look in the area if you can for ops on getting the rents you needif you do a lease option make sure you get a nice amount down with good terms for you that way in 6 months when they default you get the cash you need to cover expenses until you get it filled againGood luck!

d - Do you have that many properties in your market that will deliver this to you...and do you have the ability to manage, etc... them all, as they build up.

@Josue V I would just like to say, what a thoughtful and contemplative remark, "outgrowing your relationships."

I am interested to know how using a tax-deferred retirement account to purchase a rental would affect my ability to use depreciation.  

IMO, for someone with an entrepreneur mindset, you never have a JOB, a JOB owns you and limits your abilities to change a lot. 

Her ability to move around and manage her property is getting worse and worse. 

On top of that, being able to source the lower cost subs and the ability to take on any repairs yourself if needed is worth a lot.  

(simply elect to not renew with a notice period you specify)2) collect rent on a more regular basis...I find that a lot of folks have difficulty budgeting for an entire month, so I collect rent via direct deposit every two weeks...3) as a last resort to avoid costly turnover, reduce rent to a figure that she can meet that still alows you to cover expenses...once she demonstrates ability to say...pay $950 for two months, raise rent to $1,000 a month for a couple months...then go back to full rent...It would also make sense to verify if she has had a change in financial circumstances and can no longer afford the rent...if that's the case, it doesn't matter what you do...she will continue to fall further behind on payments