@Yissell Torres I just listened to podcast #289 with Matt Fairchild and he talked about raising capital from private parties and what constitutes a "security" and what doesn't.

I see two problems. 1) The Due on Sale Clause, though this is less of a big deal, 2) does this quit claim constitute a taxable event. 

You may be “legally” right if your agreement was as per the first scenario above, but still, you Suck as a transparent partner.At a minimum, there should have been an agreement/understanding of what constituted “cost” as far as your overhead, payroll, insurance, equipment, etc.

Because in the american legal system emails do not constitute legally binding agreements.You are an agent, so you should have some concept of contract law.

Is there any advice to doing research on what constitutes a 'good deal'?

Are there any published or known numbers for what constitutes a "good" return on an investment?

I may have missed it, but I didn't see what constitutes as hard-proof for a tenant to turn in...as I would hope/expect just their word is not enough.Sounds like an interesting idea and the OP seems to be enjoying it, but for me, it just sounds like extra work.

Article VII, Section 25(B)(2) of the Louisiana Constitution provides “In the [C]ity of New Orleans, when such property sold is residential or commercial property which is abandoned property as defined by R.S. 33:4720.12(1) or blighted property as defined by Act 155 of the 1984 Regular Session, it shall be redeemable for eighteen months after the date of recordation of the tax sale by payment in accordance with Subparagraph (1) of this Paragraph.”  

@Russell Brazil What constitutes a legal ADU for an owner occupant?

I guess my point is, it's easy to say you would sell your "problem property", maybe the question should be what constitutes a problem property (threshold for selling) to you?