But at least you'll get a sense of how much she cares about these "issues" she brought up.If she ends up staying, I'd document the fact that she told you she already has lung disease so she doesn't try to later claim it was from some condition in the home that caused it and sue you. 

Originally I was thinking to sell this place and move into a SFH or even a Multi Family and stay in it a year then rent it, buy another stay in it a year and rent it and keep moving along that way, but through reading BP forums and talking to some other REI it seems like possibly taking a HELOC and staying in this house a bit longer might be a good option because I will have a fair amount of equity.

When I asked them about getting on the lease, they both admitted to an unacceptable criminal record, but for various reasons believed they were entitled to stay.

Beats hard money in my opinion... but again, be aware of the FICO hit.Aloha,Matt

If none are interested I will get with you to see what we can adjust to make this deal go quicker and stay within the best interest of both you and my clients.

In this part of the cycle we stay away from chasing IRR.

this is a nearly full gut, floors stay, everything else goes. moving walls, new mechanicals, etc. also I guess I know now to draw up rehab plans before engaging contractors.

Short of trying to get a stay, what would some of you do if you were us?

It's super convenient and it makes sense to stay here for the next 4 years. 

Anything else I should be aware of if I go down this route?