The debtor will make $200 monthly payments until paid off. 1/3 of the $200 goes to the agency, and 2/3 goes to my account and within this 10% of 2/3 goes to PM as service fee.

You could keep the property off market and get it sold in a much easier manner. 

." - If this property is not heavily leveraged (maybe paid off) he should sell this property tomorrow.

I think they would be better off just selling to owner occupants.

Hey @Michael Walley - I'd start off by saying, you are generally in a pretty good position if you haven't already paid him.FOR SURE YOU NEED TO GET LIEN WAVIERS if you have any indication that things could go sideways - don't make a payment til you get them.I would also ask for some type of breakdown of the scope of work you are paying for as you mentioned.Here in Chicago / Illinois a general contractor has 4 months to file a mechanics lien from the last time they were working on the job.I wouldn't rush to get an attorney.

I have a friend who is an agent that is looking to assume my VA loan and buy the house off market, so that I can avoid paying fees and commissions.

This is something to consult with your CPA to further understand the total amount you will be depreciating and on what schedule.There are also many other things that are/could be depreciated and not necessarily wrote off as deductions in full, in any given tax year.

I pass all my expenses from insurance and property tax increases off onto my tenants.

What they said^^^^Zero point in starting off your business adventure with a 'work-around' and potential fights and fines.

You can even pull off The Office "win win win" scenario with 3 parties all coming out ahead.