(simply elect to not renew with a notice period you specify)2) collect rent on a more regular basis...I find that a lot of folks have difficulty budgeting for an entire month, so I collect rent via direct deposit every two weeks...3) as a last resort to avoid costly turnover, reduce rent to a figure that she can meet that still alows you to cover expenses...once she demonstrates ability to say...pay $950 for two months, raise rent to $1,000 a month for a couple months...then go back to full rent...It would also make sense to verify if she has had a change in financial circumstances and can no longer afford the rent...if that's the case, it doesn't matter what you do...she will continue to fall further behind on payments

We moved to Houston from California in the Fall of 2014. 

well I have a little sharing idea here-do not fall in love with this property and spend all your money on high end stuff that's not going to pay you backget it finished in a timely fashion and don't throw gold plating on itlook at like properties in the sale range and stick with what sells100k goes pretty fast without a budget and a visionthis is a investment you are going to turn, sometimes that's hard when you have had good times in a place for a period of time-memories- make a reasonable budget look at what sell for the range your after and don't go brokeenjoy and good luck

If home prices fall 20% in 5 years but interest rates go to 6.5% you could end up (as an investor) in pretty much the same boat.

I would rather think that there is plenty for everyone and network with an open mind than fall prey to fear and live in a "not enough for me" type of world.

As long as I get it for cheap ;-)But, and that's why I wrote necessarily above, if it's a falling apart 1800's building then you probably not going to get a class A price for it.

I would need contracts to document our arrangements in case anything falls through, but I wanted to see if anyone has experience executing a flip this way. 

They all look to fall in the 5% range for gain and seem satisfied, knowing the market will also increase the value of their investment homes.

You might want to hire someone so your hand doesn't fall off from all that writing. 

How long were they tenants and how often did you do inspections.It is not practical to rely on tenants reporting issues and falls on the landlord to be aware of and regularly inspecting a property for issues.