House #1 is rented out - tenant met all the requirements (income 3x the rent, over 600+ credit score, no evictions) when the PM screened rental applicants.

Understand their fees, bid process, termination requirements, markups for work done, how they confirm fair bidding (especially if they have on-staff handyman).I would talk to the actual tenant in place to understand what their experience is with both property and management team.I would drive the area to understand how your property compares to others on the street/in the neighborhood.I would talk to other management companies and realtors to understand their understanding of the market, rent levels, etc.Basically, full due diligence and underwriting of the property.

By selling the property now, you can avoid the time, money, and effort required to make repairs and potentially deal with ongoing property management responsibilities.On the other hand, if you are willing to invest in the repairs and potentially hand off the property to a property management company, you may be able to increase the value of the building and generate higher rental income in the long run.

My list of required repairs was 70+ after that first inspection. 

Also, the good thing about primary is that it only requires you to put as little as 3.5%-5% for properties up to 1-4 unit or 0% if you are a VA.There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible.

The most common way around this is to get a DSCR refinance, which requires 3-6 months of seasoning.

Given your circumstances, the following advice and considerations apply:Benefit from low interest rates, no down payment required in most situations, and financing for up to four units when you take advantage of the VA loan.A thorough grasp of your budget should include the purchase price of the property as well as any possible maintenance expenses and other related expenses.

If you add her to the lease, make sure it is specific as to whether if he leaves, she does too and that the deposit you got is from him.

Other purchase programs will require the 20-25% of the 200k.

I'm looking for LTR seller / owner finance deals that require $10k or less in down payment and that don't need much rehab (at maximum light rehab).