Moral of this story is to make sure you have proper and adequate (if not excess) insurance coverage, particularly when you have multiple properties (multiple possibilities of litigation).

Mike, those are the conflicts against my moral perspective to begin with; potential legality issues and my own financial situation.

"Yeah but the woman is morally bankrupt too.

The price difference from your contract price and your new sales price to the end buyer is your profit.You will want to look more into it and beware of certain moral obligations like (never putting a property under contract if you do not have the full intentions or capability to close it yourself.)

Most people who find a fix for their problems usually fall back into theit predicament within that time and I want to be the first person they think of when the time comes.

I am not saying that is a bad thing as you SHOULD be paid for your services, only to point out your opinionated statement does not come without bias.Alfred,If you are not "too hot" on retirement or tax deferred vehicles, you need to get hot as they are one of the greatest strategies/advantages to planning for retirement.I would NOT suggest you pull the cash out with your 20 month deferred plan as you will not only pay the marginal tax rate on the withdrawl, but you will also get hit with an additional 10% penalty.That said, you will basically end up with only 1/2 of your funds after taxes and penalties.I would strongly urge you to reconsider that course of action and educate yourself more on the subject, both right here on BP and any other sources such as books, news articles, programs, etc.If you are self-employed, I believe the solo 401k and now, the 401(a) plan to be a great choice over the SDI.For those you are not self employed, the SDI is a great feature, much more beneficial than IRA accounts managed by others who ONLY care about how many fees and commissions they can earn from you, regardless of the fact that you make or lose money.There are several legal and moral strategies to use qualified plan funds and benefit yourself outside of the plan all while benefiting the plan at the same time.

I see absolutely nothing morally or ethically wrong with my strategy... and I advise all of my students to do it.

Morally i feel it is the right thing to do and landlords cherish long term tenants such as these. 

Im in that same predicament. 

there are moral and ethical arguments in this scenario that your glossing over..were it becomes illegal Is as I stated the bad people get in there rip the rents and never pay and leave the poor seller out to dry..