Your explanation for why people put one house per LLC makes total sense. 

If there is no explanation or numbers, you can't charge them anything and let them go free. 

For these ones I came up with a 4-5 page explanation of how the partnership would work, how their investment would be secured, how funds would be split at any given time etc...

You just need a clear explanation about the change and a general timeline of when it will happen.

I've received private messages from local RE professionals in the Indianapolis Community after my original post (on the other thread) describing exactly what you laid out as the possible explanation for this fiasco.

Here's a very basic explanation to get your juices flowing:Assume a house costs $200,000 and rents for $1,500.

I had to do a few letters of explanation for a couple outstanding debts I had.

Get an explanation and go from there.

Once we communicated with the guest asking for explanations, she told us “I am not paying anything, you will have to do an eviction.”

And thanks for the detailed explanation @Joe Villeneuve.