If the tenant is clearly breaking part the lease your best bet is to issue them a written Notice To Comply form, giving them x amount of days (check your state law) to correct the issue or face eviction.Unfortunately if the tenant is not breaking any part of the lease you have a little less leverage. 

You guys are all correct that this is a securities offering and you would need to comply with both State and Federal securities laws.  

Also if it’s in a city in that area, if the place gets flooded, the city will require your rehab to comply with current fema regulations that say the ground floor of the house must be above the base flood elevation.

@Johnny ForgioneThis depends on your accountant and whether it’s a one off or if you have a note business - find a good cpa that knows notesAlso if you increase rate or payment and it’s owner occupied you have to make sure you comply with ability to repay and other nuances with cfpb compliance

A responsible business decision demands that you comply or decide to dissolve the business.

The authorities already knew who had them, so it was futile not to comply voluntarily.

How are they going to comply with a ten day requirement?

As far as the interest rate is concerned, most states have usury laws that must be complied with which means the interest rate can't be astronomical.

They submit the offer to the bank w/ their complied data showing the progressive reduction in price.

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