And also, the PM needs to receive at minimum, a threatening demand letter from you and/or the attorney demanding they pay and correct the situation in a hasty way.

I don't know whether their contract stated payment at 15% like the sub apparently thinks or 30% like the contractor told me.Today I received a surprise letter by mail from the county stating that a lien was placed on the property by the sub for $9,000. 

Tenant emailed me asking when I had been by, citing the leases 24hr notification rule, and tenant sent me a doctor's letter that it is a assistance, service animal.

After 1-3 years have a balloon payment requiring the note to be paid off.1st question, does this sound reasonable?

Using HML they are usually interest only not amortized over 1 year and have a balloon at the end of the year.

Go ahead and get the ALTA survey and zoning letters, that you need regardless of who you sell to.

I'm not opposed to replacing Mike and Jeff with sub-letters if they can find me replacements that I approve of. 

Offer to put $100k down and a balloon, at 10 years maybe.

I am wondering if someone has a form letter that I can edit to send to my tenants if they end up being 3 months behind.

It would need to be with little to no money down at first, but I could potentially make monthly payments once it is rented and possibly get another loan to make a balloon payment down the line?