I live here but I'm from overseas and have struggled to make sense of ITP and it seems to be such a mixed bag. 

A seller should retain a file as well and probably hard source documents.Not to let any cat out of the bag, but I'll bet mortgage servicers that accept private contracts will enter the origination process market.

What if one of your tenants came home from grocery shopping holding bags with both hands fiddling for a key and a kid come running over and he drops a can of Spam over the kid's head and opens a bloody wound.

I've seen too many people bagging on my city it's ridiculous.

I use it to store light products: Ziploc bags, plastic containers, Styrofoam plates, cups, bowels.

I even dumped a few bags in the fire wall space between units in the attic.

Which means you're stuck holding the bag, so to speak, your money tied up in a non liquid investment that you can't get rid of. 

(http://www.biggerpockets.com/renewsblog/2008/09/29/a-bag-of-money-to-buy-a-loaf-of-bread/) In an inflationary environment buying hard assets (real estate) with the use of leverage is the way to go.

so basically just do as he did. file his notice and get his 3 day notice to him and after that 30 days the guy has to be gone or he can put all his stuff outside (basically a sleeping bag, some clothes and his tv. )

The thing about the Statute of Frauds, implied warranties and representations can apply from verbal agreements, but since you sand bagged on the lease contract you're in a month to month I'd say, you don't need a lease agreement to be liable, you're living there!