My question now is do I relinquish them from the permit now and get moving on working on the project assuming I have all evidence in pictures and documentation, or do I wait longer to switch over the permit to do anything else to collect their guilt? 

@Doron Rice we use Cozy.co and highly reccomend it for collecting rent.

The bank told him he has to work 2 years before they will consider him for the FHA first time homebuyer program.My question to the collective wisdom of the BP forums is:Is there a way to get the FHA first time homebuyer loan without a full 2 years of work history?

I'm in uncharted waters here, because these girls don't have any of the normal IDs or means of submitting them to collections.

He may be able to do what is known as an installment sale on a land contract - this is where the transfer of the deed is made upon the last payment so you're only paying the tax as the seller collects the money (as opposed to all at once).This strategy varies from state to to state so it's best to check with a local Real Estate attorney.

Then do your depreciation based on the rent that you are collecting from the other tenant. 

For my last purchase, ~18mm, I had to show 13mm+ in networth and over 1.35mm in post closing liquidity.The larger you get the lenders don't suddenly throw risk mitigation for themselves out the window.These requirements are met by the Key Principals or Signers collectively so you would need to find a "signer" or two to clear the hurdle.  

I'm sure that you understand that vacancy and/or collection loss can be crushing to your returns.  

I got rehired after a six month layoff (best time of my life, esp since I was collecting severance and have a baby boy at home) and now that I have a solid W-2 paycheck coming in, I am back to talking to lenders again.

With a dismissal, creditors are free to pursue  debt collection and no debt is wiped out.