PM me for details.

Do you have any structural details?

The estimated work needed is around 40k and she owns the home free and clear. do these numbers look right to anyone?

I would just echo Leo--that your expense estimates seem low.

Estimating we would need $20K to $30K for a $200K - $300K property.ORShould we keep this SFR home paid off to maximize its cash flow and use other sources of financing (personal savings or piggy back a home equity loan on a conventional 30 year mortgage loan) to finance the down payment on the new investment? 

Let me know if you need help estimating a rehab.

We believe that the roof will need to be replaced, but we haven't been inside yet, so rehab costs are hard to estimate accurately.2) What would you offer for the property if it's something you would consider?

I have not done due diligence on these, the water, garbage and insurance are purely estimates and likely high.

I'm finding that estimating repair/renovation costs is tricky, but probably gets easier with experience.Best of luck!

And to not get burned when investing with an emphasis on appreciation, you need to understand your market down to a gnats-*** level of detail and watch it like a hawk.