This way you will even have additional revenue stream coming while you stabilize your financial situation.Reach out to wholesalers and get on their mailing list to look for deals.

During the first year of ownership, the Smith’s building delivers the following financial performance: Total Rental Income $ 40,780 Less Mortgage Payments $ 16,210 Gross Income $ 24,570 Less Operating Expenses $19,836 Net Cash flow $ 4,734(Here is the first of the shortcuts: the above mortgage payments of $16,210 include the principal as well as the interest.

The “mediation” opened with the claimant’s financial demands of $65,000.  

Who is financially responsible for doing the work and replacing the engineered wood flooring? 

I am guessing that they will suggest that you require the Tenant to have:- General Liability (1,000,000/occurance)- Umbrella Liability ($1mm or more)- Professional Liabiity ($1mm or more)- Tenants Legal Liability ($500,000 or $1mm)-  Abuse/Molestation covered under the Liability or as a separate limit)- Business Auto Liability ($1mm)- Workers Compensation & employers Liabiltiy- If they paid to make modifications to the property to be able to operate (ie. ramps, special doors, etc.) they may need Additions & Alterations coverage depending on what your lease says on who owns those.They will probably seek to add requirements that shift the burden of Insurance to the tennant for something that you both get drawn into.  

You may choose to do that now and avoid greater financial losses or you can wait till she actually stopes pay rent.When did she move in, how long has she been your tenant.My guess, as Steve noted, you are facing a professional tenant. 

My biggest motivation for doing this is to be able to achieve financial freedom, hopefully within 10 years, so that I can focus on other things without being too preoccupied with money matters all the times.

I have a lot of experience with project management, sales, financials, etc.

Also, before you make this kind of investment, you should consult with your tax guy and your financial planner.  

Not really financially wise investing.