This is tough but I have been examining similar scenarios and believe a compensation model that is weighted to the roi of the property makes the most sense  (i.e. a 3% payment for returning 20+%, 2% for 15-20%, etc....  

Too many things can happen...divorce, loss of job, job transfer, etc.

That includes loss of rent/damages etc is all taken into account.Good Luck!

You can also testify as to your own opinion of value but that may not be given a ton of weight.

She is going to eat the losses and just move back in.

The policy was brought to market about 5 years ago and the losses have been such that we recently took a 20% rate decrease. 

You'll have a solid history of W2s to show a lender and no weight on your shoulders -- that is an amazing feeling and a great place to start "adult life"!

However, a fix-and-flip investor might be incorporated (and then perhaps claim the subchapter S election so the profits and losses "flow through" to the owner as they do with a partnership or a sole proprietorship), and take title to its projects in the corporation's name.

My bar tabs would always end being worth their weight in gold later on.Calling banks for notes can be a very profitable endeavor.  

There is a big difference between a loss on your schedule e vs how the property is performing from a lender's point of view(due to depreciation).