Hey Ryan,First off, I do recommend sitting down with a tax professional so that they can understand your specific set of facts and circumstances. 

As Greg said, as soon as they owe you money, file notice to quit and any rent that comes in after that is put towards the monies owed first.Under no circumstances would I extend or renew their lease. 

While a deposit is almost always preferable, you should make a common sense business decision based on the circumstances and condition of the property, in my opinion.

Looks like more complicated circumstance than I expected.

Given our circumstances, would you recommend investing in another single home or a multi-unit (like a triplex or fourplex)?

(This requirement may be waived under certain special circumstances constituting good cause for a waiver, such as the loan being issued because of a bona fide emergency, with the lender obtaining written consent from the buyer to proceed with the loan without the disclosure notice.)The closing on a home equity loan must occur at a permanent office of the lender, at a title company, or at the offices of a lawyer.After the closing occurs, the borrower has a three day period during which the borrower may cancel the loan without having to pay any charge or penalty.

My loan officer is saying no, but the literature I'm seeing says up to 12 months delayed occupancy is allowed for special circumstances.

If you feel I can benefit from the Passive Pocket; then I need more details on it before jumping in not knowing what the circumstances are?

The best method often depends on your specific circumstances, credit profile, and local market conditions.

There’s always gonna be hiccups, time delays, over budgets for unforeseen things that’s part of the business. execute, adjust, pivot learn and keep going!