If they don't sign the agreement, they are in breach of contract and you can keep collecting rent from them.

The next step is settling any collections, then start paying down revolving debt.It is very rare to find someone who manages their business any better than their personal finances.

If there's a remaining balance, and it remains unpaid, it will likely get filed in small claims court and sold to collections when it's not collected. 

This April I closed on a GREAT deal in the heart of a hot market here right outside of Charlotte and rented out my master for another $750 a month now collecting $2,300 a month on the property (I'm paying the utilities).

This area in the past had been a killer rental area, but now people could sell and collect on it, or they can continue to know that their property is likely to appreciate at a higher rate relative to last years 11.1%.

[2] Rather than demo the garage, why not just install a 2nd proper septic system.[3] This guy must have some kind of car collection--what's his daily driver--some kind of "Far Out" Hot Rod?

It's important that they are well versed in the state laws and regulations regarding property rentals and rent collections.

You live in one and collect $1800 from the other two.

Outside of them burning the place down it won’t get worse so collect rent to pay for the turnover.  

My property manager is going to send it to collections agency but she is convinced that they will NOT make any payments.