I was going to offer %10 on her money and this personal loans looks to be cheaper then that, so I'm leaning towards pulling the trigger, just looking for outside perspective.

It can be done legally and ethically, but that is not explained or contained here or on any public forum that I know of, not even close to the stunts being pulled by wholesalers.

That said, my plan is to take out a hard money loan for the purchase, and then immediately refinance it, which would allow me to pull out around $10,000 (based on 75% of the appraised value) as well $200 cashflow each month if the tenant pays the average rent for the area.  

Key is where you pull your leads from.

@Peter Appla If you have an agent you can have them pull average rentals as well.

If you haven't already, I recommend you gather more facts by pulling a copy of the estate file from probate court.

If it only costs $735 to get rid of a problem, which most likely will annoy your tenants because most likely they will not be responsive to a tenant call either, I say pull the trigger and fire them. 

I basically pulled comps and did my own appraisal based on rents and conditions of the buildings...they had them assessed in some cases 30 or 40K higher than what was realistic.  

@Stuart Birdsong - I haven't done a title search yet to verify if there is a lien or not, but the township office didn't say anything about there having filed one when I went down to pull the details of the code violations and subsequent penalties. 

One might have looked at something the other didn't or they pulled comps in a different school district etc. a lot of different info goes into the valuation process.