This approach supports the "slow and steady" philosophy you mentioned, while still allowing for considerable progress and learning.

I will take this into consideration and calculate the numbers to see if they still work with the repairs that need to be done. 

This post is not to explain the NAR 'changes' as to highlight transactional effects and considerations NO ONE has mentioned:Prior to the new rules (that effectively forbid the disclosure of buyer's broker's fees) one could readily assume that the listed sales price included compensation for both parties.

Tax structure considerations for Canadians and US foreigners in general can be quite confusing.

It just seems near impossible to "buy right" in this state when you take taxes into consideration and come out with $100+ per unit per month.It would be awesome to find someone willing to do owner financing.

Just make sure you set enough aside for capex, vacancies, unexpected insurance increase, taxes, tax professionals, and local considerations (excessive heat? 

STR regulations are a big consideration before you make any big capital improvements specifically for short term stays, also running your numbers and making sure that your area offers consistent returns above what you'd get renting it long-term.

. - Not taking into consideration the foundation issues.

(I would recommend strongly against giving her a reason.)As far as ethics, I would say it's MORE ethical to give her the boot, out of consideration for your other tenants and the neighborhood at large.

I do agree about adding that second bathroom, that's a huge consideration when folks are touring places.