In Tennessee (I'm a TN-licensed lawyer -- in Chattanooga, actually), when a life estate (as @Russell Brazil aptly noted) is granted via deed or will to a descendant, that individual has the right to occupy the property until he or she dies.

I can't think of a worse thing to do than own a handful or a few LOW end rentals.. it will drive you NUTS. 

@Russell Brazil Appreciate the mention.

I bought a short sale in an attempt to get a little bit of a deal since the market here in Seattle/Tacoma area is pretty nuts.

@Russell Brazil is exactly on point, 2% rule works when the properties are cheap cheap cheap.The rule stems from the belief that (a) half of gross rent will go towards expenses, and (b) .6-.7 of the rent goes towards the mortgage payment. 2%-1%-.7% = .3% monthly profit.It's a very conservative formula, but just explaining why some investors stick to it.

Thanks @Russell Brazil and @Donald Shaver! 

As @Russell Brazil mentioned, the home will have a warranty for a specific period.

Everyone is floored, but half a million can make anyone go nuts apparently. 

She probably has a an exclusive agreement with the listing agent and will still be required to pay commission to her agent as @Russell Brazil stated. 

Thanks @Russell Brazil and @Andrew Postell !