As you probably know from also living in the area, values can change dramatically from block to block, so it might matter most how you feel about the outlook for the specific area it's located in.

She is asking for 600k to pay off a loan which leave s a million of equity. rents are way below market and vacant so makes it interesting to say the least.

Have others structured similar deals, and if so, what worked well (or didn’t)?

This is a business after all.Maybe keep her on a month to month so you can increase accordingly later.

Although, rents are starting to plateau all over Utah, if not come down, so just be cautious of that while running numbers.

Keep in mind your mortgage pricing/rate may change by doing this, so good to loop in your lender early on to let them know your intentions. 

Thank you so much! 

Quote from @Beatrice Ontiti: I am so glad that I stumbled upon RTR because my experience has been exceptional!

Comments like "this area has nothing else like this" and "it just flows so perfectly from room to room" confirm that following what the house called, not what the area called, worked! 

., so I would be interested to a) hear other BP members' lender recommendations for this sized property and also b) other members' experiences working with Fannie, Freddie, etc.