The main thing I want to make sure is that this is legal.

However, loans under $200k, it's closer to 3-4%, and loans under $125k, expect around 5%.Lenders typically have flat fees (UW, legal, etc).

They are a legit lender, but I have found their terms to be average and their guidelines are more restrictive than other options. 

Can he cancel his entire annual lease legally and I should look for another tenant? 

So, there are different underwriting guidelines for different properties based on the location.

If your wife’s family agrees, you could look into purchasing the home from the trust, possibly before it enters probate, which could save time and legal headaches.Reducing Closing Costs: One way to reduce closing costs is to negotiate a private sale among family members, which might save on agent commissions and some taxes.

I'm a long time professional property manager and I'm not afraid to deal with delinquency or other legal matters myself, so I only pay for the services I want, like screenings and the tenant payment portal. 

The published cap should be used purely as a guideline, whereas the final determination could vary. 

But the damage was done—I had already gone through three management companies, three evictions, and a lot of lost rent and legal fees.

It’s fair for the capital partner to handle these financial contributions since they aren’t bringing management or hands-on skills.Whatever structure you choose, make sure all contributions and profit-sharing are clearly outlined in a legal agreement to avoid any potential misunderstandings down the road.