We have an LLC registered but haven't had much activity in it, so I was always thinking of starting a small-scale Real Estate Consulting where we could offer the afore-mentioned services for a minimal fee.

The Poconos has always been hit or miss (unlike Smoky Mountains or Panhandle or Tampa where you have way more successful STRs), but right now the Poconos is worse than ever:https://www.biggerpockets.com/forums/530/topics/1157934-shor...

If you want to block it off, I'd do something similar to your diagram on the bottom left where the door to the new bedroom is closer to the bathroom. 

I am not opposed to the arbitration option but would prefer the deal to be structured more like a rent-to-own where I would build some equity. 

@Alex Loginov where's your rental located?

Property is located in Illinois.Here is where it stands as of now:- cash out refi about to be complete.

We have an investment in College Station, TX and since my wife and I attended school there we are very comfortable with areas where renters and students want to be.

In RB for example, actively licensed properties have a window where the permit can transfer to the new owner.

I have 4 identical units of property where all the units need a little work to be on top. 3 units are occupied and 2 of them are paying way below market rent.

I dont know the answer here, it is above my pay grade but if I were you this is where I would start.Talk to a lawyer.