That alone is a pretty solid contract.Of course it's a great idea to "paper up" to make sure everyone is covered, and would definately be the better setup for a long term arrangement.

But Im thinking a lot of their kids would be on the young side so maybe just a good elementary or preschool.  . 

Plan was to make high-end rental units with some exposed brick, in-unit washer/dryer, off-street parking, tile shower, solid countertops, etc.Mistake 1: I had a local architect make building plans involving a floorplan change for a new bath/kitchen/master bedroom with walk-in closet arrangement in the rear of the units.

So I would follow him being he said he was going to arrange another one soon. 

For those funds we work with that do allow leveraging, we normally skip the bank and arrange the line through institutional lenders.

You will probably want to hire one to draft up a contract for the arrangement anyways.

Caveat: in virtually all LOC arrangements, be aware that the bank will be able to "call" the line of credit at any time. 

Its the same in Canada but you have to make arrangements with your lender that your corporation will be owning the subject property 

Your better off just working out an owner financing arrangement than these wacky lease option / master lease arrangements all the gurus push .

You can arrange detailed reimbursement policies etc.