You and I are in a similar situation.

I think in most situations you'd be better off buying a turnkey with 20% down, especially if you can get a fixed rate loan.

Has anyone had experience with a situation like this? 

He wasn’t my first choice, but a “convenient” situation caused me to select him.

That being said, does anyone have some sample term sheets they have created for this situation that would include the responsibilities of the borrower and lender, the amount of interest for the term, time period and payback terms.

Any advice for this situation. 

I'm still learning to balance how often I should contact the tenants and in which situations. 

There would be no refinance in this situation since there was no original financing to begin with.As for the credit cards, to get a single card with a 20k or more limit would be based on your credit history, but American Express has been known to be generous with initial limits and credit limit increases after 60 days of opening the account and then 6 months again after that.

Give her whatever notice you have to for the month to month situation and part ways.

She has been transferred to a new living situation due to health reasons and can no longer pay both her mortgage and the monthly rent at the new place.