That's a condensed version of what's involved, of course, but suffice it to say it's quite different than a typical wholesale deal and a heck of a lot easier to find a homeowner willing to agree to terms.

@Gilbert RodriguezThere are several considerations that can go into the analysis of whether you need an LLC or whether a large insurance policy will suffice.

From a learning perspective and I am concluding, 1. a simple addendum to an existing purchase/sale contract saying seller can stay x days post closing, etc,etc, does not suffice at all...2. a best option is to move closing back, 3. and a last option is to create a "lease agreement" or "post occupancy possession agreement", I assume same thing. that needs to be written with strong terms of protection, and it is handled completely separate from the closing transaction.

If you have an experienced 3rd party property management company that should suffice for experience.

Saving 8% monthly should suffice.

Do I need to respond to her via a certified letter or would regular communication suffice?

In this scenario, would an LLC with a detailed operating agreement suffice?

Lenders can count retirement accounts towards reserves, and that has sufficed for us. 

Typically I stay out of such requests, but for some reason, if in your shoes, I’d provide a short, basic and simple letter to suffice her request. 

@Camron CottamIf a simple POF letter from your PL will not suffice, the title company would probably have no issue in verifying the funds are available for your seller.