Luckily we priced the W/D at a rate where we'll come out okay considering the maintenance/repairs but again, something I didn't think to stipulate in the paperwork when we established this.

This requirement, as ridiculous as it sounds, was in the master commercial policy, a copy of which had never once been provided nor had this requirement ever been stipulated by the agency. 

@Thomas Moran Signing any contract bonds you to the terms stipulated in that contract; however if you don't follow through and lose your EMD I highly doubt the wholesaler will be suing you for damages under the state law of wholesaling. 

There may have been stipulations in the divorce that were negotiated. 

That’s pretty much his only stipulation.

You can also probably start the eviction process based on not allowing access to the apartment for repairs with appropriate notice (which I'm assuming is stipulated in your rental agreement) at the same time, if they're going to give you more trouble. 

If there is anything you don’t want the seller to take off the property as well I would include it in the stipulations.

I would like to structure a deal along these lines:1) Sell the tenant his unit for 500k and provide him with 125k for the downpayment for the mortgage he will acquire.2) Create a contract that stipulates:    (a) He will agree to participate in the TIC -> condo conversion (I will pay all fees) (b) The 125k is a call option where if he decides to move, he has to first offer me the option to buy the unit for 375K (500k-125k) (c) If he passes away,  (b) also applies (ie I have to option to buy from whoever inherit the property at the time of his passing)(d) He gets to keep any equity he builds up (think of it as buyout money)Advantages for the Tenant:(a) He becomes an owner and doesn't have to fear being evicted for the rest of his life(b) The mortgage + property taxes + HOA fees would be similar to his current rent (2250$)(c) He gets to build some equity(d) He can deduct interest charges from his incomeAdvantages for Me:(a) My unit becomes a condo and can be resold individually(b) My unit will not be covered by the SF rent controls if I decide to rent it(c) The tenant is 71 years old, so when I eventually regain control of the both units, they will already be condos.

I stipulated the importance of new investors finding a means to learn how to properly calculate rehab costs BEFORE they start making offers without abusing the valuable time of contractors expecting them to teach them for free.

Didn't you have a financing addendum stipulating your offer (and earnest money) are conditional on being approved for a mortgage with 5% down?