I can understand why they are trying to find a workable solution. 

You should definitely have someone lined up who knows your numbers and is on board with your plan, even if it does end up taking several months or longer for the property to season before they'll do the refi.On the surface the numbers look workable in that you meet the 1% rule with the purchase price (though not the ARV, assuming it would also be around $300k, which is admittedly less important from a brrrr perspective) and could conceivably get all your money out with a clean refi at a realistic LTV ratio.  

It's a workable system if you understand it, but if you don't they will eat you for lunch.This article is actually pretty consistent with my experience.

Prosper was the most workable, just expect a $700 initiation fee or something that they take out of the front end of the loan.

In 2009 the scenario is to "buy the dip from market crash".In 2023 the workable strategy is either "househacking", be a lender/buying notes or "add-ADU-and-rent-itout".Different time, different strategy.

. - A negative cashflow is workable if your YOY investment appreciation is enough to give you a positive net income at time of sale. 

There may be equity there based on what she owes, but you've got a ways to go to make this even close to workable.

I investigated this some time back, and found the LLC route to be the most workable.

Perhaps a workable compromise could be a pop-up reminder asking "Are you sure you want to send this colleague request w/o taking the time to introduce yourself" when they attempt to send a CR would be a sufficient reminder?

Without knowing more, like how temporary this income setback might be, I'd say that this situation is not workable, and your best bet would give them a nice guy break of $50/month, ask them to start looking, and remind them that if they clean the place real good, they can get their deposit back.