We have great homestead protections for your primary home and up to $60,000 of personal assets, as long as you pay your taxes and mortgage nobody can touch it.I'm sorry to hear about the loss of your friend, I know that must have been tough for all involved.

My schedule E shows rent income, and after expenses such as repairs, taxes, utilities, etc, I ended up with a net loss.

However, a few expense items are missing or underestimated:Vacancy: I suggest an amount equal to 1 month's rent per year [$1300].Repairs and Maintenance and CapEx: For a $90K house (and without knowing the age of the house or it's major systems), I'd propose more like 1 month's rent to be safe [$1300].Management: Even if you plan to do this yourself, there is going to be a cost in time and money to address late payments, handle repairs, renew leases, etc.

I think if the above 2 items is yes it cash flows, and the bulding is in a stable and/or rising area, go for it.mike.

That doesn't even address the issue of market appreciation of the properties in question, or the expected turnover rates for each, or a host of other issues.You'll have to do an analytical review of the pros and cons based on your values in addition to the items which you can actually quantify, and then base your decision on that.Good Luck!

Also, is there ANYTHING I'm missing in line items on this sheet?  

I would just empathize with the daughters for their loss and offer help with the sale if they need it.  

3.75% I could not get a conventional loan in 2012.. as I shed off hangover inventory and took loss's and lenders for some reason don't like that .refining my resi now at 3.0  15 year.. my first home I bought in 1975 rate was 9%

I would think an advantage for them would be that they keep the loan rather then have you refi with a competitor and loss it completely. 

(A bucket list item...) and now at Cuyahoga Valley National Park here in Ohio.