I know this is based on the goals I have for my self but a general rule of thumb, after deducting expenses from my cash flow, should I A) Use the extra $ and put it in the mortgage B) Save, save, save to buy another property in the futureC) Is there a third option that I'm missing?

Those events were extra, not included in the GA ticket.

Why work extra hard if the tax implications make it so that it would have been better not to do the deal?!  

X would like to find new boyfriend to move in with because she can then rent the whole square footage and possibly pocket as much (or more) than section-8 pays the owner for the unit.The rooms may or may not come with stove privileges (at an extra cost).The subletors must (keep their heads down) at the rental and not be a problem (while there) and pay on time. 

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it.We have a 12 page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.

Definitely worth the extra money. 

It was necessary and worth it, but be sure you have a comfortable amount of extra cash on hand for major unexpected surprises like this.

Used extra basement square footage for additional bedroom What was the outcome?

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it.We have a 12 page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.

The extra 1 BR and 1 Ba come from existing space.