When that time comes, i would suggest getting one lease from all the tenants in there so the whole home is leased to all of them instead of trying to produce multiple leases for the property. 

Low quality, cheap mass produced big box units.If nothing else buy a better brank from a plumbing supply store, nit a big box store

Thanks for Replying, Carolina,My credit score is close to 800 (shouldnt be a problem) last time I checked few months ago and property is long term rental producing good return.

This industry, like any other, produce winners and losers.  

OROption 2: Go big and do a cash-out refi/203K/HELOC to not only repair the foundation and waterproofing, but to add an extension to the home that would support a legal duplex for some income producing property.

My job is to make repairs and get the place lease optioned so it is producing income to cover the interest payments I need to make to the lender.

So, for a tenant to claim they have a lease in place they would need to produce a written document. 

Generally, many 2-4 unit properties are not purchased for their income producing abilities alone, as much as larger multi-unit properties are.

I can imagine a complicated mechanism that would produce an arguably valid 1031 strategy...but it almost certainly would create more problems than it solves.  

Is he running a very established business, lots of web presence, social media, referrals through “next door” type boards, to go after in small claims court.