And yes tenants do tend to take advantage of the situation. 

Has anyone experienced this or been involved in a similar situation?

In your situation, I would say this deal becomes a very poor investment after you move out (especially considering your $392 monthly cashflow, excluding the cost of your time and energy spent managing it, and perhaps some utilities expenses that may or may not have been accounted for here). 

this is highly regional ... for those responding that live in markets with no real historic appreciation or values have actually fallen since the peaks of the 90s.. there is no reason to buy anything that does not cash flow.. who wants the risk and stress of landlording if there is no real appreciation upside.as to Steve's comments on IRR that to me is the metric.. i have bought almost all my west coast properties that were break even to negative and once i exit.. the IRR far exceeds anything i could have gotten with a non appreciating " cash flow property".. 

Do not expect them to behave as you would in any given situation.

She's in a tough situation and needs to sell her property fast.

I've researched the topic on BP, but I am not finding the best explanation based on my clients situation. 

This isn’t my situation nor my video but this is just to show you what a burst pipe looks like.

I have thought of contacting real estate agents, contractors, lenders or property management companies.What would you do if you were in my situation?

If you do this wrong you could get sued and it will cost you much more in time and mental stress...