That would be considered unreasonable by the court.It is not right for him to break the lease and it sucks.

I think so but want to make sure I am not being unreasonable.

It's not an unreasonable request.

If the last hurdle of the tax bill is passed, does it make it more advantageous to have your RE in an LLC?

If you get past that hurdle you might need a self locking gate and fence.  

But it is usually more of a psychological hurdle than anything. 

A successful note investor is tenacious and does not let any problem or hurdle  get in the way.  

How do you get around this government implemented hurdle?

Here's a sample of fine print:“Borrower shall occupy, establish, and use the Property as Borrower’s principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower’s principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.”Different lenders have different "fine print" statements that may be more grey and confusing.

Any advance or deposit of money furnished by a tenant or lessee to a landlord or lessor to secure the performance of any part of a written or oral lease or rental agreement shall be returned to the tenant or lessee of residential or dwelling premises within one month after the lease shall terminate, except that the landlord or lessor may retain all or any portion of the advance or deposit which is reasonably necessary to remedy a default of the tenant or to remedy unreasonable wear to the premises.