@Ryan Daniel  I will preface this with the fact that I have a legal background, specifically with estate planning and asset protection in relation to real estate investments.

On June 7th, we sent an itemized list of deductions via text; he responded on June 8th, disagreeing and threatening legal action.

There are some legal considerations as well as practical considerations 1.  

@Cristal Ochoa @Leiah DotlichI will preface this with the fact that I have a legal background, specifically with estate planning and asset protection.

Your client should consult a real estate attorney to draft an agreement with the ex and ensure there are no legal or tax issues, especially since this is an investment property.

One common approach is to form a legal entity, such as an LLC, where both of you are equal partners.

Give proper legal notice of non-renewal and get them both out.

We have a RE attorney & mortgage broker to make sure our operation is legal & compliant.

Someone in the legal profession told me that we can give her 30 day notice and then proceed with an eviction. 

I think hard money lender to take this risk cannot legally charge appropriately which means the law is working against you (the law meant to protect owner occupied owners from unfair loans).I agree with @Jay Hinrichs that your best option likely is to sell on the mls.