If she cannot pay, gracefully "let" her out of the lease and get a performing tenant. 

@Bryson WilliamsTypically you would have your tenants pay their own utilities since you wouldn't want to cover someone's high water or electricity/gas bills but some cities will put a lien on your property if certain utilities aren't paid.

This gives you tools to generate revenue as you self perform projects.

They are all cash-flowing and they are all performing well. 

I live in California and like many California Investors prices are just too high in the area I live.

There are major manufacturers and distribution centers as local economic drivers that help support a high quality of life for its' residents.Montgomery, Alabama is centrally located and perfectly positioned in the Sun Belt.

(Rental loss = repairs or renovations exceeding rental income) If you are a high earner, you generally want to get advice from a CPA that understands real estate income & taxes, but here's a few thoughts:1.

I was able to set and get the rent high enough at the AZ home to cover both the orginal mortgage and the equity loan.  

I understand the inventory pricing is a bit high

With high interest rate we know some CRE/banks would get hit.