You might find yourself dealing with an angry tenant one day who makes the threat, but they usually don't mean it because they know you did nothing wrong.

Do you think this letter is just a threat?

I took advice and sent an email (took out emotion) listing the payments, with a link for Ca 21 day deposit law, emails from him confirming payment, the lease, and the “check out” form signed by his property manager saying I left it in as good, if not better condition, as move in and that it’s ready to rent.His reply was that “he can send me his attorneys info if I want to continue with legal threats and that he simply couldn’t get to me, if any monies is actually owed after he views property (had someone else in 21 days ago now) any deposit due to property manager on vacation and the Holidays.The “property manager” called me a stated he’s just a handyman, not property manager, and that he never took vacation and that the owner hasn’t paid him for several months for the “walk through” before our move in, the “walk out”, and next guests “walk in.”

Maybe I'm bias because in lending we have to do one for every loan.Your plan will vary based on the audience obviously, but here's a jist to start with:What you're trying to accomplish (summary)Who you are (sell your management skills)detail of the business model in question (location, financials)SWOT (strengths, weaknesses, opportunities, threats)risk mitigation (every "what-if" you can think of and the plan to correct, exit strategies, etc)Where your partners fit in organization structure (who owns what, outlay where everyone's risk is spread)This is obviously not complete, but should get you started.

A thorough education of real estate and analyzing your strengths, weakness, opportunities, and threats will help guide your way.

I’m following this same investment path as my first deal and have similar concerns.I do feel as though the strong underlying economy in Denver creates great long term prospects for appriciation and rent increase, despite the short term but very likley threat of depreciation.However I don’t think slowdown in rent should push you out of the deal. 

That being said, it is possible this was an empty threat.

I would also tell the lawyer that you will report them for even reaching out (not sure what the threat is and how the letter was written), but tell him that you will report him to the local court and law enforcement.

So for the rest of your life these tenants could ask you to do anything they want under the threat of turning you in for writing this false letter?

She even threated me that she could have had the police put me in jail for starting the fire (In my opinion this lady is an delusional bully.