Banks have no interest in foreclosing, so they are motivated to work out agreements.

Found awesome one today and made offer for client...so we'll hope he gets it.   2-3-4plex is tough...lots of competition and numbers don't seem to work out well most of the time.   

Given this person is funding the deal you will need to work out some sort of terms in regards to their profit on the flip in consideration of interest due  One example would be for every additional $125 in interest payments to the partner you receive 1% additional equity share (making numbers up).

More likely things are going to work out as agreed upon. 

As the other respondents have pointed out wisely here, you're best off NOT subletting in general because it is a difficult situation to work out well.In general, if you are keen on keeping the tenant and subletting is a sensible option then it makes the most sense to have a local real estate attorney draft a sub-lease agreement that clearly delineates whose responsibility X, Y, and Z is. 

From there you can try and work out a deal to see if they would split the cost on the new water heater.

My rationalization is that I can just evict her if things don't work out.

I’ve seen tons and tons of videos of calculating your ROI, but when you guys plug in numbers on rental properties to see if it’s going to workout.

Yes, we know that if this property doesn’t work out, it will be a long time before we find something again (whether good cash-flow or not) but that’s not a reason to buy a property that doesn’t make sense numbers-wise.

I'm sure it will work out, even if it takes a few more tries.