The SLREIA and Utah REIA meetings have a lot of collective experience.

Just because you can do something does not mean you shouldAs to whether a tenant will actually collect? 

I don't see how they could send a collection agency to you or anything if you didn't sign anything with them. 

Rather than reinvent the wheel, I wanted to tap the collective knowledge of some structures to have an investment model for buy/hold without locking my own money up.The pain point is the exit.

Every month he sends the payment after collecting their shares of the bill.

That's great advice because you need to be cognizant of Fair Debt Collection laws. 

I did fully close this property myself and collected rent for 2 months before selling the house.  

Make sure you verify the expenses to include getting actual financial data from the owner from tax returns and bank statements to verify actual rent collected especially since they were “generous” with rent. 

Initial $7,536 will be collected for materials.  2.

With The way  the non-advalorem taxes are collected the Seller of the relinquished property ended up with 189 credit and they were concerned with taking any cash as a result of a sale thinking it may trigger a tax event... so they opted to have that credit increase the amount of proceeds they received.