@John Casmon episode with @Omar Khan (not mentioning for some reason)  goes into more depth (Episode 52):https://www.casmoncapital.com/podcastTaking annual #s and dividing by 12 is going to give you the wrong answer and cause a ton of problems.This is because value-add project are heavily weighted in the first months and stabilize over the year.

I have been trying to market this property on and of for the last 6 months, but now its starting to become a burden as I have to pay on a delinquent water bill that was the result of a busted pipe leak in the basement right before we closed on it, and additionally I have to pay the remainder of the taxes.

In addition, I feel like if I have to pay PMI, I am not ready to purchase another property.

The best thing to do is to speak with a lawyer that specializes in landlord/tenant relations and see if they have any additional suggestions

That in addition with checking the rental history kinda helps find the good tenants.I didn't have any big issues with Sec 8 Tenants there. 

I am new to bigger pockets and currently owe a 3 unit rental property with the intentions to buy additional rental units in the next couple of years. 

Legal Fees $2400 Deposit Required for the mortgage - 20% - $35,000Right now rehab - 22,000Property improvements and correction of deferred maintenance over the next 2 years - additional $24,000 Mortgage payment - 871$ / monthWater - app $200/monthProperty Tax - app. $300/monthGrass/snow - quoted by a local company at $274/month (1800 for snow for the year, 1500 for grass for the year) Insurance - $140/month (got a great rate not cheap insurance) The heat source and hot water is natural gas, New furnaces and water heaters installed in 2015. 

If your partner is not ethical you could have real issues, and there is also the possibility for one partner to not pull as much weight as the other partner.

In addition, your holding costs are way too low.Holding costs - Prorated property taxes, Insurance, Utilities, Interest on loans, LandscapingBest of luck!!

Simple because in a court of law the contract holds no weight due to it being an illegal service to begin with.So the scorched earth response Jim K said he would do it not only impossible in this situation, but also illegal if he actually succeeded in get an 'eviction' on her record.