I do not like that after 5 years their is no ceiling for the rate resetI'll insist on it.Are there any prepayment penalties?

They didn't seem too happy with my response so I have been wondering:Am I doing the right thing by insisting that the wife's mother sign the lease? 

., having to finish a project by a deadline or else facing a huge penalty when doing a reverse 1031 exchange, or to meet a deadline agreed with the city who will impose punitive fines if you miss it).This is also a good question to ask in a local real estate group such as RIREIG or Black Diamond REI, as I'm sure others will give different answers to this excellent question.Last minor note: Years ago someone told me it's a good practice, if you ARE going to get proof of insurance, to insist that the insurance company send it over to you directly (fax or email) since it's possible an unscrupulous contractor could alter an old certificate to change the date.

Yet our clients (and often management) insisted on using them over and over because they were cheapest, despite repeated poor work and missed deadlines.

Nevertheless the attorney insist on asking for one.

In my first instance of paying 50k up front, I insisted on some kind of contract because their response was "Oh usually the client will just sign the quote sheet, pay the 50%, and then we get started."

Never buy for negative cash flow.When I saw your post I knew you were here in California before I started reading your post :-)Never buy for negative cash flow.If you insist on buying in California where you live so you can "be able to swing by and look at your investment" then buy in an area that will give you some cash flow.

If there are a few changes they insist on you making on the house, you could say you would do if they pay for it (The upgrades you would want to make at least).

She is the one on insisting on follow her old contract - she wasn't interested in a new one, which is fine.  

If he does not want to do it, insist it's important to you and offer him cash for keys.