After being burned by tenants that get behind and never end up paying and lead to eviction I now state in my lease that we start the eviction process the day after the rent is due, but I make sure that is clear form the beginning and if they fail to pay then we charge a late fee and start the process of eviction based on my states requirements.The reality of the matter is that if they don't take the rent out of their paycheck then they most likely wont pay the rent, if they do then they are borrowing money which will put even more financial burden on them and make it less likely to pay on time the next month, or they are waiting until their next check to cover the rent and then will have a hard time catching up in order to pay on time snowballing into perpetual late payments.If you really think about it allowing a tenant to get behind on the rent ends up hurting the tenant, you are not helping in any way.

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.