@Chris Martin  I don't dispute anything you're saying, I just don't think that's the whole picture when deciding whether to invest in a particular home. 

I am with you, Tom.I do think a court order of possession (back to the landlord) would be different than a domestic dispute where one tenant is to stay and another is to leave.In the situation of possession, the court has ordered the property reverts back to the landlord, meaning the tenant is now trespassing.It may be an issue of which issues the local police will involve themselves.

They will wake up and fix title issues for you, bond around them, or pay you the value of the policy and take title to the property instead of fixing title.There are a lot of "ifs" and "maybes" between here and a resolution that can radically change this answer.  

I would obviously like to dispute the appraisal and the comps he used.

On a refi, you can take a property from an LLC (via comapny resolution, deed it to a member and declare a distribution), the member gets a loan (signs the loan and D-T), then the member puts the property back into the LLC (via encumbered property contribution).

Watch out for the 5 D's of partnerships death,divorce,disabled,disputes,decisions.

He is a con artist and a bully (to broke little old ladies mostly) so I didn't have much hope of a peaceful resolution other than foreclosure.

I made it my resolution to participate in my first investment this year and I'm excited to see where it takes me.I've found the trouble with most things in life is taking that first step and I feel this is no different.

This 3rd unit is now an additional person who's going to ad to the noise, laundry & parking disputes that are already prevalent in these types of properties when there are 2 tenants.

I'm looking into LTR, because it brings me probably 15% less income but a lot of hours of less work . still considered.Bill, I agree but permits are a complicated thing. there's the notion of  "use" which is very subjective and disputable , but unfortunately still a thing.What do you guys think of adding a 2 lines provision in the lease to disclose the "uncertainty" about this matter so that the tenant can't use it against me ?