Let them know you want to try and avoid this for them and maybe can work out a payment plan to get updated on the rent. 

So it's a cash-intensive deal but it works.

I’ve done work out there.

I hope things work out for you. 

Just work out with the details with the owner, make sure every thing is documented and legal, and they are aware you intend to sublease. i would also recommend you make your tenants aware of the situation and sign them to a month to month  lease until you own the house. if the deal falls through before closing everyone will be in a bind. i would start a new lease agreement once you close and own the property. you can incentivize the current owner to do this because you will be leasing the property from them. more money in their pocket. 

It is a form that states the landlord must propose a workout remedy. 

She may be asking you to provide a specific offer on a specific property were you can work out all of the numbers and therefore estimate a profit on that one project.

I own one place in Austin that I work out of when I'm home but I bought it for my Grandparents and mother to live in. 

What if your apartment deal does not work out?

Other than that its a very capital intensive business  with many moving parts..