The best thing to do would be to consult an attorney, but likely, that is not an option for everyone starting out.I'm not an attorney, and this is not legal advice, but some of the information that we include in our contracts is:- A clear scope of work - Payment schedule / Milestones- Change order approval process- Allowances for finished materials- Reasons to terminate the contract- Expectations for start date (X amount of time after final plans /permits are received or X amount of time after the contract is executed)- General schedule and timeline (This is where you could specify an end date - however it may be better use incentives rather than liquidated damage if your general contractor is late - we've done both, but found General Contractors respond better to getting something if they get done early instead of being punished for being late. 

I'm hesitant to proceed without legal advice.

It's to provide clarity on Real Estate Financial, Tax, & Legal to real estate investors who probably don't have a strong background in tax, legal or financial.

However (I'm an insurance agent not an attorney) the legal wrangling of the PM not taking a necessary action could set up a situation where the insurance carrier pays then subrogates back against the PM company for their inaction so the property manager should also have appropriate general liability coverage for their business.This next part can change by state and insurance carrier...Being named as lienholder or mortgagee can set up the lender being involved on the payout of any damages - say there is a fire the checks cut for damage could name the insured and lender so both parties have to agree how those funds will be used.Some carriers have a rule that if the loss amount is under a certain dollar amount the check is only cut in the owners name / if the loss exceeds a threshold (say $25k) the check is cut in both the owner and mortgagee names.Being named as loss payee is literally that - the check is cut in your name or both the insured and your name. 

They have been approved for a single family home Fannie loan (cannot do FHA because my husband works in the Cannabis Industry and the gov't will not allow).

I also informed the tenant that the past due balance needs to be paid immediately or we would take legal actions per lease agreement. 

Hi @Kevin Duong,I have not used demountable walls before, but I would say to be very careful to make sure that the units are still meeting the legal standards to be considered a bedroom.

Tags: Kenosha Wisconsin fsbo agent realtor  Legally you were never expected or bound to offering the commission.Now you can simply only pay the selling agent, and the buyers agent has to inform the buyer that they might have to pay - in an ideal world....The risk of not offering to pay the buyer side is the buyer can tell their buyers agent to skip houses where they would have to put out for the commission, it may result in less offers on your home.It is now ultimately up to the seller, but in a for sale by owner.... you are not signing any listing agreement with a listing agent so, again the buyer's agent would need to pay the agent.If you are an agent selling your own home off-market FSBO, check your state laws on disclosure etc.

And don’t forget that your legal bills, process server fees, etc are higher.But even after the expenses and the higher maintenance, the reward of the much higher NOI is there to be earned.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.