I would still have taken it down, but I would have had better expectations with the final result had I been closer to the final budget.

Once you receive Form 1098 from the lender to you, issue two matching Forms 1098s for 1/3 of the amount from you to each of your partners. 

The lawsuit route will probably result in a worse financial position. 

It may give you more results and I'd take a duplex in a nice area over a 3-4 unit mf in a bad area.

The pipes were stolen prior to contract resulting in water gushing inside and wet carpets etc.

This is not very practical, so probably you will have to pay personally and then do a monthly transfer from LLC to personal account, matching 1/3 of the payment.In the same token, how to expense the closing cost, appraisal, points, ...?

He has sold several deals to many flippers I know and they've all been very happy with the results.

I did speak with our attorney before hand and he basically said he’d be happy to do it for a fee, but he also advised me to go to the state website and fill out the form and pay $50 rather than pay him $1500 for the same result.

Does the owner of record match the name of one of the guys?

To operate without knowing them is likely going to result in the tenant taking their landlord to court.Don't risk it, learn th elaws.