Is to close both loans at the same time, usually the Hard Money lender will want the PML 2nd lien lender to sign a subordination agreement to make sure that they are in 2nd position, because Texas is a 1st to file state, you could run into a situation where your 2nd lien goes to the courthouse 1st, and files 1st.2.

You can either clearly list the 6% state sales tax and the 6% county tax separately in your rental agreement or invoice.

We were able to increase rents by 40%+ and have signed lease agreements in place with full occupancy. 

Well glad to hear we're in agreement.

Review their management agreement.

Second, inflation could affect the water price within that 12 year lease agreement.

I would like to think that advertising for, interviewing potential renters and setting up the lease agreement (of course read and reviewed for my SD IRA trustee) would be OK.

HI Dara,If you own more than 50% of the LLC and can prove that you own it via operating agreement IE you’re the manager or member for 51%+ you can use conventional financing to close on this refinance out of your LLC (you will need to quit claim deed it back to your personal name and update the preliminary title report prior to closing conventional).Fannie doesn’t care about seasoning and timing however if you opt to use Freddie Mac there is a 51%+ ownership of the LLC required and or 12 months payments or occupancy required so freddie is way tougher for their continuity of obligation (COO) requirements.

If they are "verbal agreements" paid in cash or something like that, yes that could be an issue...

It sounds like you want them to sign a NDA (Nondisclosure Agreement).