She may leave as a result, but if your unit will be at or still slightly below market just outline the improvements you're going to do to the unit and then invite her to find another unit for the same rent that will have the same amenities you'll be adding.

Single-member can be flimsier I'd imagine, but these are docs that outline your perpetual entity and will be on file with the banks and title co's for every transaction you do.   

@Howie BakerSorry to hear of this, but since you haven't clearly outlined the details of the deal I'm not sure what the best advice is.

Here is the book to read outlines how to do it " how to own your home years sooner without making any extra payments" I was on pace to pay off my 30 year note of 240k in 9 years as a Medic, until I realized this is a horrible Idea. 

We are very careful to prohibit behaviors not people.We can prohibit the act of smoking on the property, or at least inside.We don't prohibit people who identify as smokers from renting with us - we just tell them they can't smoke on the premises (however we define that) and then outline what the consequences of violating that policy will be. 

I’ve prepared a rather detailed operating agreement that outlines expectations for everyone.

Please note the first paragraph in the “Third Party Addendum for Credit Approval” where it explicitly states the following:“If Buyer cannot obtain Credit Approval, Buyer may give written notice to Seller within 20 days after the effective date of this contract and this contract will terminate and the earnest money will be refunded to Buyer.”This clearly outlines the time frame in which you had in order to complete and obtain Credit Approval as well as whom the release of earnest money would go, should you not be able to obtain Credit Approval within the agreed upon 20 days.

The terms and conditions that will set you up for success in LL are before you ever sign a lease based on screening, deposit, and expectations outlined to the tenant, and then later on you maintain that control when an issue arises.

Do you all have a written business plan that outlines how you are going to reach your goals?

You mark up the price for your profit but theoretically leave enough equity for the end investor to make a profit as well.Of course I'm leaving out details and variations but I think that's a rough outline.