Again, that is a might because I don't know exactly what will happen or if it's worth it for the accuser if you ever get sued.Bottom line, if this is really important to you, I'd get a lawyer's opinion.

Again, talk with your accountant (maybe a lawyer too) but...One of the biggest challenges I think a lot of 'full time conversion' REIers face is 'how to pay myself in a way that isn't self-employment' ... it becomes a huge deal when you're doing silly little things like, say, getting a cell phone, or a car loan, or a mortgage, or lines of credit... or a credit card...This is where it pays to spend the time and money to set up your LLC/C-Corp/S-Corp correctly so that you can pay yourself on a W2 or through an S-Corp and not have the problems/taxes associated with a 1099.

If that doesn't work, maybe her receiving a Cure or Quit from your lawyer will scare her into following the rules. 

Can someone recommend a good real estate lawyer in the south Chicago or northwest Indiana area?

I don't want to do this myself, or with a non-expert lawyer, and end up with a worthless LLC. 

I'll. let others speak to the lawyer question but about the appraisal: single family homes are appraised based on comps.

Are there any Ohio real estate lawyers in here who know the investing ropes and perhaps even have experience working with real estate investors?

v=FmO4eXcVd8EThere are so many friggin lawyers in Cali I would never do a LO or Seller Financing Deal without a RMLO. 

If you see him, safely film him at a distance using your phone and if he still hangs around you and your partner should speak with a lawyer about the option of filing a restraining order against him. 

We did finally create LLCs, but our lawyer sucked and so we didn't really do much with them.