Based on the behavior you've described I don't think I'd want her in my rental anyway and would offer her a deal to return the keys and leave, but I wouldn't do this without there being a consequence to her (deposit forfeited, rent paid for the time she's had possession and possibly lease break fee).  

I had no offers for the first 25 days, even though the house was being viewed every single day.

I have explored other sources and have found the level of complexity you describe to be true.

You could do a sub2, as you were describing, with the inherent risk.  

@Bill PohlUnderstood, so you view your financial stake as essentially a separate partner from your sweat efforts.

I would view it as a violation of trust and my privacy.

You have to factor in analysis of the "hassle factor" such as flying out to view the property, time taken to do so (I don't recommend buying anything sight unseen).  

FR - 5397 - N - 05), “Federal Housing Administration (FHA): Temporary Waiver of FHA’s Regulation on Property Flipping; Extension of Waiver” , dated November 29, 2012 at http://www.gpo.gov/fdsys/pkg/FR-2012-11-29/pdf/201...View the Electronic Code of Federal Regulations at http://www.ecfr.gov/cgi-bin/text-idx?

Apologies if this is a question that didn't need to be asked. I could find a clear definitive answer.  I wondering, when trying to finance a property with an FHA or conventional loan. does the bank take the rental inc...

Does this number seem a high number for the home we've described?