Controlling the property with paper appears to have many advantages.

As @Rob Leonard said, I would seriously consider the tax advantages to selling.One way I personally would think of it as buying it from myself for the full value.  

That has the advantage that she will get not only the $35K but also the interest.

When I move out (hopefully by this time next year), I'd like to purchase an owner-occupied duplex/triplex and take advantage of an FHA loan.  

So, if you come and you need contacts, there is some opportunity there.The area Mark Doyle mentioned has the added advantage of having mass transit available: the Metra train line runs from downtown Joliet east through the New Lenox and Mokena areas and then north-east toward the I-57 / I-94 corridor and then north into Chicago.In short, there's a lot of opportunity, but also a lot to learn about the area before making your initial selections on target properties.Hope this helps!

Anyway, I look forward to taking advantage of all this community has to offer.

I'm still young, hardworking, personable, attractive (I'm not concieted just a realist and know this can work to my advantage) Can anyone tell me any advice would be so appreciated I dont want to live in this pain anymor

It looks like you are in the military, so make sure to take advantage of the VA loans available to you if it makes sense to do so.

I'm not trying to take advantage or be unscrupulous. 

Also be sure you understand UDFI (unrelated debt financed income tax) and the taxation structure your IRA will be subject to due to utilizing leverage on a tax advantaged account.