I don't want to wait to fix this, because the urine could seep into the subfloor and legally speaking I need to mitigate my damages.

It may be a tough pill to swallow if you feel you’re totally right, but you may be surprised at the LEGAL opinion rendered by counsel.  

CA is brutal when it comes to taxes.I don't give tax or legal advice, but many people believe that holding the property in your name and having a good umbrella policy is a good solution.

If need be, I can/will go down the legal path again, but I would like to avoid it as I want this property flipped ASAP. 

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

- Also, what is their networth, so they are legally collectible for the guarantees?

In the program, it appears that you offer a Pre-Loan Application-- perhaps this is how the program is legal?

Your client should consult a real estate attorney to draft an agreement with the ex and ensure there are no legal or tax issues, especially since this is an investment property.

Seek legal advice, however, what I understand is that there are really two way to wholesale that is legal in the state of Arkansas.

It separates your personal assets from your business, providing a safeguard if any legal issues arise related to tenants or the property.