This insight will translate into a better understanding for you as the investor.  

The net operating income (all expenses + taxes + insurance) of 12k sounds about right if this is an all-cash deal, but if financing is required, which is 25% down + CapEx, that beautiful 12k operating income shrinks down to around to 1.5k operating income which translates into $125 of monthly cashflow, and this is what gives me the 4.5 CoC that I was talking about.

What will be required from the seller party is:- Detailed scope of work of any/all additions, improvements, alterations, repairs, etc.

Actually, you can craft the deal anyway you want and alter it as needed depending on the feedback or lack thereof, you get.

Certainly I wouldn't renew, and would alter your process so that they don't get the keys until they switch.

Does your $100k stake translate into more equity because the fund is getting financing?

Let me translate what he meant by telling you he's the most expensive in town. 

And can a law suit be filed against this by tenants saying they have proof of altered payments history and won’t pay the overcharged fees

Out of this 10k your lender is only using 75% to 80% towards your mortgage, in other words you only qualify for 7.5k to 8k mortgage payment, which translate to about 1.1m loan value. bank want to see you downpay at least 20% to 30% in those deals. 2.

You need to operate the LLC properly (mainly don't co-mingle funds and use an alter-ego).