So I will be able to sell the place earlier or I will increase my cap rent if they would choose to stay, this will be ok with me as well.

Okay Steve, I will tell you my answer to mitigate acrimony but I choose to withhold specific details and documentation until later because the purpose of this dialogue is to invite open discussion for creativity regarding a common scenario.

I mean the house is in need of at least 40k in repairs and if the bank would choose to put it on the market, they be getting the same amount I would think max for the home by the time they even put it on the market.

In the future I will look around on putting them into an LLC if I choose that route.CO A&B are management companies.  

The conversation was about anchor properties, we mainly focused on reasons we chose those properties and what made us choose them.

Attend open houses and see what is on the market that a prospect would choose other than your place. 

If they still choose to have the application processed and they are declined I always let them know why.

With that broad parameters they set, I am planning to put a cap on finishes as part of the proposal, say for tiles it will not exceed $2.00/sq ft on the finish material (grouts, mortar and etc not included as finish material and represent tile only), or give out colors on the countertop (ie gallo lines), so they would not choose anything expensive, basically I will be setting cap spending on top materials.

If the goal is risk mitigation, and your exposure isn't huge (maybe you have a property or two and are just starting out in life), some investors will go the insurance route and choose a large umbrella policy over forming one or more LLCs.

We have two options, parlay this into another local REI meeting which we have three to choose from.