Would there be anything illegal or ethical with it?

I would only reimburse for days they had to leave the property due to treatment and I would never return deposit until after they are out and you can deduct cleaning or damages.

There may be some gray area here in terms of ethics so I'm interested to know what you think. 

My use of the word greedy, was directed towards how reasonable they might be on price, rather than a ethical value judgement. 

I love her work ethic though and that she's a go getter so decided to put my trust in her.

You are left with $550k, so you would need to reinvest at least $550k within 30 months for the investment to qualify for OZ treatment.

Also willing to work with new investors that want experience in learning to do rehabs and have a strong work ethic and are dependable.   

Young hustlers can make some good money wholesaling if they understand the ethics of the game and truly want to help sellers and buyers win. 

.- We can add language to the documents that allows preferential treatment to large institutional equity.

For federal income tax reporting this means the SMLLC is dissolved and there's no distinction between the SMLLC's assets/income and the owner's assets/income.The tax treatment of you holding the property directly vs through a SMLLC taxed as a disregarded entity will be 100% the same.