What you’re suggesting is not cash flow, it’s return of principle, giving her her own money back  If she sells with your deal.

There’s a lot of great suggestions in this post.

However I would take a WAG and suggest there might be less than 3 or 4 lenders in the entire US that are HML and do OO. 

Any suggestions?   

Would anyone have any suggestions! 

Brokers have their place in the industry as do retail banks/mortgage bankers.

Here are a few suggestions on how you can maximize the wealth of information available: Check out the blogs and podcasts, or take advantage of the search feature (magnifying glass).

I'd suggest that there is essentially no tax implication for this as compared to your alternatives.

Here are a few suggestions on how you can maximize the wealth of information available: Check out the blogs and podcasts, or take advantage of the search feature (magnifying glass).

.: Application/Screen every tenantIMO I wouldn't allow pets since it wasn't leased with petsOtherwise a non refundable pet feeI would charge at minimum 350 upfront per pet or not allow them at allThe Realtor who sold me the property and helps me find tenants, suggested $500 nonrefundable deposit for 2 cats and $25 a month each.