If tenant has been breaking rules outlined in the lease agreement then they don't have to give that notice.https://docs.legis.wisconsin.gov/statutes/statutes/704/19

You will need to do a cash out line of credit or a cash out refinance.

I'd like to present them with a form that would outline the details/payments etc.

This is as much an interview for them as it is for you.Compiling the information that @Caleb Jordan outlined is key, you'll also want to prepare questions to ask them.

.;  I think you're missing the part that I have bolded which should cover you in the scenario you outlined.

I have the outline of a plan in place and would love to hear some feedback from the people in these forums who have the experience, and started where I'm at now.

Let me try to answer some of your questions.First, you should begin by outlining your goals.

The percentages you have outlined for capex are too vague.

Will I need to go to an attorney to have them draw up papers that outline the agreed upon loan terms?  

Look for violations outlined in your lease and keep hammering those....at best you can find enough to warrant eviction, but by the time you do that, it will be close to the lease being up and then don't renew.You won't change this behavior...at best you lessen the issue until you kick them to the curb......