Here in Maine you can only give 7 day TOL if they're late, destroying the place, endangering, and you have to have witnesses the prove all but the late rent, so we usually give a 30 day "no reason" TOL if someone is not working out .... if they've paid last month's rent, we have to tack that extra period of time through which they're paid up to the 30 day notice.

Yes the compliance cost of a LLC is some what of a burdon, but a @Jerry W. it is an insurance policy, especially if you and your wife have assets and future earnings to protect.  

This way you have a thrid party witness who can verify the agreement between you'll is legit.

After doing some more research and talking to an engineer who inspects apartment buildings and also has been an expert witness in court, I'm definitely getting permits for any electrical, plumbing, HVAC and structural work.

I would also serve him with notice of inspection for 9 a.m. on the 1st and note that the inspection will be conducted by yourself and a third party - and show up with a witness to photograph/record the condition of the premises and document who is there.

Even if they call the police, they couldn't show any evidence of ownership or rights, whereas I could have all the documents proving ownership, my buddy could have a lease agreement signed by me, and I could have 3-4 witnesses that my buddy has lived there for the last three weeks.

But once I became an agent I got more confident in my skills dealing wit the property because that was what I did all day every day.

It favors home ownership in general: witness that interest on home loans is personally deductible, whereas rent is not.

Find your original purchase receipts for the items you put in place for his tenancy to add to your documentation.Also, are there other witnesses to the condition of the property prior and during this tenancy?

More to the point we would be well organized to support expert witness, legal advice, and ongoing political involvement so we wouldn’t require a lawsuit again in the future.