It is essentially a long term rental with a shorter stay lease.

I understand since the bank is essentially paying the contractor with multiple draws upon work progress, they will have a contract with the contractor.

If you get a bank construction loan to fund the rehab it will be more expensive and most contractors will decide to pass on the job because of all the paperwork.

But essentially @Scott E. is correct.

Because LA is such a tricky place to deal with tenant law, you need an expert to run through your options, draw up important paperwork you might need, and keep up to date on the laws of the area.The investment in a lawyer could saves you thousands of dollars if this tenant becomes more of a hassle.

Essentially what is the delta in anticipated profit from acquisition to permitting on average for you?

And of course when my wife pays the 2500 a year she gets 100% commish . now to be fair she has and has always had a transaction coordinator to make sure her paper work is perfect..

I would simply have the conversation with your roommate that her GF is essentially another tenant, and that if GF is going to hang out when tenant isn't there all the time, she needs to be on the lease.

However, it essentially has benefitted my owners, but made me the bank, helping their cash flow and hurting mine.

Doe the LLC paperwork you have has your name as sole owner of the LLC?