One small bump in the road and with the lack of extra cash flow you might end up loosing your home and the rental house.  

Be patient, work hard, get your degree and start investing now at a small scale and watch your portfolio grow.

The Evansville BP is small, but growing fast.

Another note, if the issue is as bad as you make it sound, after a couple of heavy treatments you will have a small cleaning project to complete the removal of the dead guys!

What will happen in this case if we plan to move to a small claims court?

Most of them - especially the small mom and pop operates - tend to overstate income (If you raise rents you'll make this" and understate expenses by conveniently forgetting to include some of them. 

Maybe a small company not tied to NAR would work for your wife because then you’re not forced to join NAR at $500-600/year.

Hi, I inherited a 1 family home, where I had been living for more than 10 years, I did not pay rent prior to inheriting, continued to live in after inheriting, no interruption.Got the deed 1.5 years ago after probate procedures , but inherited it 3years ago as a matter of state law the title of the property passes on to the heir upon the descendent’s death.For the last two years it has been owner occupied rental 50% of the property several rooms, it is a small mansion.

Then, decide on the product: SFHs, small MF, large MF, office, retail, etc? 

I have one project under my belt with a small Multifamily that I fully gut renovated and recently fully rented out.