You could argue anticipatory repudiation, in defense, if needed…You would want to include an exhibit to your complaint demonstrating the tenants intent, in writing, and supply a very detailed and complete declaration. 

Has she demonstrated responsible behavior since?

Don't forget that at least at the local commercial level most of these guys and banks know each other so if you get a good relationship (demonstrated by multiple notes with one guy) they see it and it is a confidence level for the second guy as well.I guess my long winded bottom line is develop a relationship somewhere for the first few then expand out. 

@Mike Rash, It's not the length of time that it takes, it's how you demonstrate your intent.  

You are truly an inspiration to me as you are demonstrating brotherly love by giving back to the BP community.

The investment amount isn't as high as E5, but must be "substantial" and all at risk, in other words, you must demonstrate that you run the risk of losing it all.  

The basics:I'm a local investor with 11 units of my own in Kalamazoo, a great cashflow market in the Midwest (I achieved the 2% rule in case that helps demonstrate).

Usually I have to tell people that they don't but you, @Adrian S, have clearly demonstrated that you do know Jack! 

Banks don't accept payments as a general practice once they are behind anyway.If the seller also can demonstrate financial hardship, they may be approved for a short sale like @Jerry W.points out.  

Demonstrate that you intend to do a lease-option and that you believe the rent and option price to be reasonable.