If you’ve been at it a while you end up running through most scenarios in real estate investing.Single family rentalMultifamily rentalFix and FlipAnd the alternative methods to acquire the assetOPM- Other people’s money (partnering)Owner financedNo money downI am sure there are strong arguments for each camp as investors have been successful in each and many have done all three.

It uses less water so you'll recoup some of the lost money that way(though make sure a low-flow situation is OK for you- there are cases where low-flow causes more problems that it's worth.)Alternately, you could tell her that if this happens again, you'll replace her toilet with a composting toilet that uses no water and that requires manual "emptying" on a semi-regular basis.

They would then require you to come up with alternate financing.  

I personally didn’t like the experience of trying to get an FHA loan last year so I’d love to see alternative options. 

Markets your rental on all the most popular sites.

I don’t think there would be an alternative to replacing the ductwork.

I know that Big Bear tends to be more popular, and there is more to do there, but it also seems like a very saturated market with vacation rentals, so competition would be very high there.

Alternatively you can violate the alienation clause in the loan after refinancing it in your name and back to the LLC. 

There is even a filter for Tiny Houses, so it must be fairly popular and desirable.

HELOC's are an alternative option. 2.