The outside looks like it could use a paint job.It has a new roof, updated mechanicals and a tenant that has been there 7 years and pays on time.

Last year was a bit painful as we had a very bad hailstorm that took out 20 of my roofs. 

With the exception of the roof, just about every part of the house needs to be rehabbed (kitchen, bathroom, floors, windows, foundation, termite treatment, paint, plaster repair, insulation, electric and plumbing update) whether I want to preserve as a SFR or if I wanted to sell without a loss.I'm starting to wonder if makes sense to just tear down and do a new construction.

As others mentioned, this very well could be setting the tone for the rest of her tenancy, and may not be worth the headache. 

New roof (2020)

These expenses include property taxes (school, village/city, town and county) property insurance, regular maintenance contracts for things like lawn care and snow removal, maintenance reserves for unexpected repairs to plumbing, heating, etc and for large expense items like roofs, painting, and updates).  

Maybe they just meant that after being a landlord for a while, you're going to need counseling

7% for both seems aggressive, unless the home is super old and needs new plumbing, electrical, roof, HVAC, etc. soon.

i have done 2 ..30k properties   in the past  4 years  here in Houston,Tx  area  , needed alot of work , foundation /roof / electric /plumbing ... big ticket items  , wasn't bad , becaue the neighborhood comps were in the 110k range    , after all said and done , listed and sold for 100k  , spent  on  rehab  35k / comm /closing 10k   came out with 25k profit ... 

Focus on your tone of voice and make you intro short but clear.