Here is a link outlining the rules https://www.sanantonio.gov/Portals/0/Files/Finance/hotel/hot...

You are NOT in breach of contract if your financing fell trough as outlined in the financing contingency in your offer! 

They are several mentors and I think @Rick Martin did a great job outlining some of the groups.

But federal law does (as outlined in RESPA, per David C.'

I think the method you described would work, but I would be more concerned about outlining the "deal" between you and your partner.

Then, outline your expectations as a client.

An attorney will outline all the ways it can be divided. 

What you want to do is legal but there is a specific law that outlines what you can and can't do. 

In the case of non-renewal, local law may also allow you to treat the Tenant as a "Holdover" if they remain after the end of the term, in which case I include that info in the non-renewal, outlining the penalty per State law (often, you can charge double the normal rent for some/all of the holdover period).

Now, the OP didn't ask about BRRR, but how to value for an offer, the BRRR can leave you out in the cold, I also assumed above there is no fixing, just buying a ready to rent place and that would be as outlined.