Sooner or later, she may not able to keep up with the rent if her financial situation become worst.

Since the tenant is your friend/family, sooner or later, they will find out the truth that you didn't sell the property and use it as an excuse to kick them out.

I was already considering selling the property after the current tenants leased expires in December but the flooding has me thinking of selling sooner rather than later. 

. -  we could had been done sooner but NYC was a tough place to flip.

Advice: Act on bigger deals sooner and create more relationshipsDone differently: taken more action - bought more properties and held on to as many as possible (less flips), bought larger multi-familiesChoices that didn't produce desired outcomes: Side tracked on deals that didn't fit my modelHorror stories: I talked about this on my podcast interview with Joe Fairless, but not having written contracts/agreements.

Just remember to take action sooner than later

The sooner you tell him, the longer he has to find a new place.

also on the topic of CDs, ally has a "no penalty" CD currently yielding 1.5% for an 11 mo (but again can access your money sooner w/o penalty).  

If it's in a great location and likely to get snagged up quick maybe you can offer them to start the lease a month sooner and if not then keep looking for another tenant.

It seems more akin to revoking their access to the shared pool, gym, or laundry facilities in an apartment complex.