Both offers are very similar with respect to interest rate and closing cost.

@Andrew CarlsonI’m absolutely loving the comments, but here’s my take, if she has a system in place to keep her customers (based on what you said) or her friends (what it could actually be 🤷🏽‍♂️) organised and respectful when they’re over at her place, that’s clearly been working, then you need to keep collecting that steady rent and possibly even up the rent and get her to sign a new lease.

IMO, they run a very respectable operation.

Praise the good attributes of the home but respectfully express your concern for the current condition and ask if there is some help you can offer.

I make all mine month to month and everyone seems to respect each other and keeping the common areas clean.

Most experienced inspectors will work with you or make it clear why they can't if you treat them with respect.

Can you please shares insights on the cost structures with respect to the various taxes levied and cost to run (cleaning, handyman, utilities etc).

Building strong, respectful relationships with your contractors is key.

If Michael wants to keep the house, he buys out Jacob based on Jacob's cash contribution to the purchase plus/minus some percentage of the appreciation/depreciation since purchase (% could be based on their respective cash contributions to the purchase).

I'm not an Attorney but you could set up an LLC (Parent Company) that is owned 50/50 by each of your own respective LLCs (You own 100%).