Essentially giving me use and control of the property for less than 1k a month for the first year. 

My initial thought is to have her fill out the proper application paperwork and sit down with her to communicate the transition.

Essentially you are adding an extra layer of protection for your tenants, your other tenants, and yourself.

Essentially, they all suck in some capacity.  

People here are essentially talking as if grab house off the market, throw furniture in, and you are ready to arb.

We have a $250 roommate change fee built into our leases as it takes time to do paperwork, screen a new tenant etc..

If it happens a third time, the lease is terminated and I have paperwork to evidence their past violations in court.When you give a warning, make sure it includes the process for steps two and three so the tenant knows what further violations will result in.

He’d essentially only get $60k cash at closing because the other  $90k would be paying off the HELOC.

The issue is if I give out the address and asking price they could scoop it up because I don't have any paperwork on it yet.

Schedule B states the exceptions to coverage, Schedule C states the items that need to be taken care of prior to closing (essentially a to-do list) and Schedule D is a disclosure.