My property manager rented the place to an elderly lady who appears to be suffering from dementia but is assisted by her daughter.  

The lady is currently paying $1340 where she is and they are increasing the rent to $1650.  

She is on a month to month lease and my wife is to the point where she wants this lady given 30 days notice and gone as part of the sale. 

Even though this lady is nice and pays on time and, it's hard to find people like that, she's got her bad side which is going hard on the house.

Of course if they were not willing to then work with me that would be another story but it seems like this lady in your situation is trying really hard to keep her home, but in the end it is entirely your call and your budget and what it can sustain. 

To the lady's benefit, she may have misunderstood your question.

Anyway a few days later A lady calls and tells me that she is my tenants roomate and has been living there for over a month and is getting mail there.

One ceiling fell down on a lady, but I think she was using her broom to pound on the ceiling (she'd complained about the upstairs neighbor walking too loudly LOL), but she wasn't hurt.  

This lady is an absolute nutter and none of my tenants would support me in court because they are afraid of what she will doto be continued

But she is a chatty lady and I haven't had an email from her since the 27th.