Property A and B are lake lots next to each other and Property A is now foreclosed on.Property A - 1/2 acre lot, with a tear down home on it.  10 year old septic/drain field for this home is on Property B, which original owner still owns next door.Property B - 1/2 acre lot, 5 year old garage on it.  

Purchase the property from your example and now monthly debt increases to 2.9k and monthly income increases to 5.9k, new DTI=49%I believe to do this strategy numerous times you would a.) need to get smoking deals or b.)have a high monthly income 

Higher cap rates could also mean the the property is vacant or needs extensive renovation.lower cap rates are usually b and a class properties in nicer areas or bigger markets.

It's more of a low B area and appliances are expected by tenants.

Option B, we find a 'cause' to have her removed such as something that has been violated in the roommate agreement. 

But I think @Bob B. is right about having a conversation and letting her make the choice to move on before it impacts her future.

. , @Andrew B. .

If the tenant has an A to B location for a smaller price point and reasonable cap rate then lots of buyers will want it.

@Mike B.

Cap rates in B, C areas are 6-7% right now.