@Bryan Creed I may be biased because I am a property manager myself, but it sounds like the management company is being thrown under the bus prematurely.

Now in the event it comes to prematurely terming the lease in return for an extra month of rent, what happens to the security deposit.

Hopefully my first post isn’t premature, but I’m just wondering if I’m thinking in the right direction:Been reading a lot about real estate investing, and plenty of family involved in real estate.

highlight_post=4513923&page=1#p4513923I could be sounding a premature and conservative alarm for you, but you have no margins to begin with and are going to be running a deficit.

I’ll happily pay for another home inspection instead of prematurely paying for full replacement of both A/C units!

It is good you have started thinking of possibilities with them, but communicating with them and worrying about timelines for a non-existent deal is premature. 

However, once the exchange has been completed, is it then possible to immediately establish a TIC with my partner, where I then convey a percentage of ownership to him at no cost, at which time my partner than funds the completion of the construction or would the IRS consider this conveyance as premature sale of a portion of the property by me, thereby demonstrating an intent in their eyes that counters my intent to hold the property for investment?

I would make sure that you are comfortable standing behind them before referring business (don't want to jeopardize your reputation by referring prematurely).  

If all looks good, I renew their lease during the last 30 days of their current lease.I think you're awfully premature to label them the perfect tenant.

I haven’t got as many bookings for the upcoming season as usual and I’m working hard to turn that around but I think throwing in the towel at this stage is really premature.