I've even heard of GCs using auction type settings for returned items at Home Depot and Lowes for steep discounts.I've learned a lot about the GC game as I was up close to over 40 projects last two years and some went well and some did not and when they did not it was all Contractor related.If a GC isn't sourcing cheap materials at the same time milking the hell out of his 150-200 per day workers, then you can find yourself eating into your margins real fast. 

While they do eat into rental margins the larger profit came from the sale and the added rental profit was not worth the hassle of being a landlord.

It may even eat into your vacation.

If you are only doing a 1-2 year lease option, then I'd recommend you just buy down the prepayment penalty to 1-year and just eat it if the borrower executes early. 

You buy the property, you give the tenant notice of a pending increase, they pack up and leave, then you spruce it up and rent it at market rate so it's a profitable investment.When egg prices double, do you think the local grocer cries in his coffee every morning about how inflation is impacting his customers?

Skip the vacations, skip eating out with friends.  

As the owner, you may want to eat the cost since future tenants will likely make the same mistake.

The buyers need (not request) a full 5%-6% seller assist and become complete menaces and eat into your margins with lengthy repair addendums following inspections. 

Always pay them back and eat the loss yourself.

Just like you, she can do RE as a side gig and learn a lot more while she keeps her own nest egg going and her lendability strong with a regular job.You should loop her into a major document with all of the properties and all of the profit and loss and go through them one by one and talk about whether to sell or keep, and also base it on geography for her and your collective choice of management.