Either they agree to a household cleaning arrangement or it's a trainwreck.  

Download your state landlord tenant laws, you could arrange a mutual lease termination buy out and charge a fee equal to several months rent to let him out, depends on state statues if there is a limitation to what that fee can be.Happens all the time so that's the nature of the business.

Of course there is always a certain degree of risk with any arrangement, whether tenant pays each month or 12 months in advance.

Originally posted by @Momchil Kanev:She will need to pay the tax on her 50%I am wondering if it would be possible to arrange the ownership 90/10 (Tenants in Common) or something, to avoid some of the tax?

Is your current arrangement perfect?

You're subsidizing their living arrangements and even after 10 years they can't qualify for a mortgage?  

I know realtors in my area who've done it for clients, however, I'm not sure what the arrangement is and what the incentive is for the agent.  

I have one lined up. just dunno how it'll work if I start to apply and then Capital One DOES come through. don't want to waste the other lender's time. doubtful he gets it done in 8 days also...will need to make arrangements for two families for prob at least a week.

Lots of investors have come to me asking for this kind of arrangement, but they typically are looking to buy properties in the $20k-$60k range. 

Basically the banks selling properties don’t want to wait for the time it takes to arrange financing so they default to “ no financing”.