Cancel your meeting with her, turn in the insurance claim, don’t talk to anyone anymore about the circumstances.

I do not like the arrangement because clients find it restrictive later as circumstances change.

Plus, you'd have a tenant who would be leaving under unfavorable circumstances.

Yes, there will still be people who will need to live and rent there, but just know what you're getting into and be ready with a few different plans for all those circumstances.

If they can't produce any or if the income is low I would not rent to them under any circumstances.

IRS require to own the home and used it as your main home during at least 2 of the last 5 years before the date of sale to exclude capital gain up to $ 250k filing single or $ 500k filing married jointly.Under medical reason or change in job circumstances, you can at least exclude partial capital gain of $ 11.5k ish as mentioned by Natalie.

My personal rule is that my lease only changes under a few circumstances. 1) I found something new I want to add because of some new education. 2) My attorney saws something needs to be added or removed to comply with the law or reduce my liability. 3) My tenants have, by their behavior, shown me a short coming in my lease.Here is a little montra to say to yourself "a vacancy is a blessing compared to a bad tenant".

May be different circumstances elsewhere, however.

*There are "extenuating circumstances" exceptions that allow only 3 yrs, but that's only for a divorce, accident, layoff, etc beyond your control and you better be able to document the crap out of the hardship, income loss, dates all match up, etc.I'm not licensed in NY, but if you need a rockstar LO there, PM me and I will connect you.

What would you do in this circumstance?