You can either have her sign a new 1-year lease, or she can remain month to month which would not require her to sign a lease each month.

Consider working with a list broker who can make some recommendations for some of the new motivated owner occupied lists like; Seniors with Long-Time Ownership and Owners with Low Financial Stability Scores (FSS)

Seller's end up being responsible for your malfeasance so while it may be "off the books", the liability remains to some extent no matter how your purchase and sale agreement is structured with them.You came out guns blazing against my statement, without clarifying your position, until I poked holes in your comparison between your position and that of the OP.

@Megan RandolphThe closest is buy a non performing note, get it reperforming then sell a partial to get your equity back to reinvest in another deal and you will also keep payments on the back end.Example, buy a $30,000 UPB non performing loan that is paying $400/month with 120 months remaining 10% interestYou buy it for $15k, they start reperforming then you sell 15,000 worth of payments at 10% to investor which may be 60 months (numbers not verified and for example purposes).

@Skyler MartinsonMy property so far has had negative cash flow.I had a four month vacancy last year, it took about a month to get contractors into the house to get it rent ready (just fresh paint and minor fixes), another month to get it actually listed on the usual websites where people look for rental properties and then it took the remaining two months to get the property approved by HUD.

If a Task was partially done, they will be paid partially for that Task and will get the remaining the next week when it is done.The other item I will do differently is the getting of additional materials needed. 

These are people who share motivational characteristics of people ready to sell, but haven't yet done all the work they think they need to list property. 

I would mostly like to motivate him to take care of it himself, but I would like the pricing to be somewhat reasonable as well.

The best deals are off-market because people who have done the work needed to list their house with a realtor expect a lot more money and you have competition from everyone with access to someone with access to MLS.Think about sending mailers to what we call "motivated sellers" You can work with a list broker to get a target that's good for a competitive market.

Prefer SFH far and away for the following reasons:Easier to rent / more responsible tenant - built in buyer - lower maintenance issues ( tenants typically take care of incidentals )  - larger appreciation  - easier to sell - larger cash flow - low vacancy rates ( 1.2 % average over the last 3 years ) - easier to overall manage  All my units are in Winnebago County with the following averages appraised value  $88,000 / cash flow $312 m / LTV 67.2% / 5+ and 13+ remaining amortizations ( originally 7 and 15 full termed ) monthly expenses $54 m 2018 47 m 2017 so technically net cash flow would be $258 2018 and $265 2017.