that's not fee a tenant should NOT have to cover.. it's required,, Lock change no fee unless they failed to turn in the keys,,  did PM take any photo's of before condition,, and photo's of move out condition.. 

I don't think hard money would work because with the trailer still there a bank won't refinance me out.

I've been approved for convential financing and I found a deal on a 12 unit but the bank I'm using wogn't finance anything over 4 units.

Corey.Have you tried going to local banks around you, see if they can give you a loan for the property? 

Banks and businesses should not even be taking payments! 

I'm also interested in meeting experienced investors that would be interested in working together on future investments.A little about myself:I moved from Florida to Chicago about 7 years ago and currently work in Finance at an investment bank downtown.  

Why is he offering you 40% instead of turning to a bank / hard money lender at 5-12% APR plus a few points?  

If you attempt to transfer to an LLC, you risk having to pay back the loan if the bank finds the deed was transferred.

I'd do a roommate written agreement,, rent amount, and make a list of house rules.If a new roommate fails to pay rent you still are required to file eviction, you just can't change locks or tell them to Get out if they don't agree to leave.

Regardless, I'm probably going to try at least the 3 local banks in town before finding other funding options.On a side note, why do banks have to "season?"