Really weird teacher

I just moved to a new town. I befriended a woman down the street from me and we’ve been talking every day. At first she seemed very reserved and intelligent. She’s a kindergarten teacher and I used to be an English teacher before I became a stay at home mom.

Lately she has been texting me things and telling me about her life and some of it I find alarming.

She is 35 and I found out she actually still lives at home with her mom and dad because she doesn’t want to pay rent and her mom still does things like cooks her meals and does her laundry, and she even checks in with her mom kinda how a teenager would. She has started gossiping kinda like a teenager would too.. about her coworkers and even her students. She sent me a picture of one of her black students today and said “look how ghetto and mean he looks. He’s a little thug.” I did not respond and don’t think I’m going to. She will also gossip about her students’ parents and says things in their private files. She will tell me if they are on medication for example or will say things like “he needs to be on adderall” or “she has an anxiety disorder and is fucking weird”. About five year olds!! She goes on to Google maps and looks at the home of all her students and shows me pictures of “ghetto” houses they live in. It’s really bizarre! I don’t want to continue this friendship at all. But it feels so awkward because she lives two houses down and I have to see her still! Is there a quiet way I can cut her off? Just slowly start to ghost her? Wwyd? My husband thinks I need to phone in an anonymous tip to her principal about her actions too but I know she’ll know it was me and I low key feel like she could be quietly dangerous and retaliate against me.