She needs to pay the rent. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Real Situation, no not real names.Things happen, friendship is over for whatever reason.They were doing a house hack while renting out the other rooms to tenants. 

Are you planning to live in one unit and rent out the others or make them all rentals?

This is why people don't like renting to friends/family because its human nature to mix emotion into the decision making and that makes dealing with managing the investment messy when things go sideways.

.* My insurance carrier does not accept escrow payments, so I would need a solution that wouldn't require escrow or something creative with the escrow.Property Details:Duplex located in Wisconsin (city of approximately 9,000 people)Purchase date:  05/10/2024Purchase Price:  $85,000Rehab:  $31,000ARV:  $140,000 (still need to have appraisal completed - this is based off of my comps)Projected rent:  $1,450 / month (just listed so no leases yet. 

If that is the case I would think you would be better off selling and just renting a place.

Dripping maybe 200/day across 5 rented ($1/mo) phone lines.   

What is the best way to approach this, build to rent communities or buy a property and rent out with property management.

I am thinking about just sleeping in the loft area and renting out all bedrooms to maximize profit.