Does your local housing authority allow this type of arrangement? 

If the agent is suggesting to put it in writing it might be because he can now nudge the seller into accepting a lower than previous offer since the house has been on the market for a long time with no other potential buyers. 

Also, forgot to mention, this house is a hundred years old! 

So I like to lean into a combination of house hacking and value add.

Sell the house as is or use the lot to build new construction and sell for 2.5+.

I am not leveraged on this house so I can sell and start fresh but have no idea really the safe way to get started. 

I bought a house with my ex, and after a few years, we split up (on good terms).

She is willing to sign on as the main tenant which means she is responsible for the apartment. my thoughts thinking out loud:the other prospective tenants have income issues so at least in this case I know the rent will be paid. the mother has pretty significant assets (low 6 figures + another 6 figures from sale of the house) if he destroys the property I could go after her for it right?

What kind of insurance do rehabbers get? Builders risk insurance with general liability? Which company would you recommend? I'm currently looking for one for a single family one story home without HOA. 

We added value by re-doing the whole house, installed vinyl floorings, rebuilt 2 and a half bathrooms, re-painted the whole house, replaced all the hardware in the house, installed new lighting, ceiling fans, re-painted the kitchen, and completely remodeled the upstairs.