I 100% agree with the idea of letting the pros do what they do best and believe that retaining a good lawyer and CPA are huge benefits and worth every penny.

This is well into she needs to retain a lawyer ASAP territory.

In these states the borrower retains title to the property when they purchase and the mortgage is simply a lien filed by the bank on the property.

I don't want the guy come to me in six months saying "hey, I know we weren't going to refinance until next year, and I know that we owe contractors money, and I know that the renovation is only 50% done, but I need $10k for a retainer." 

You are likely not entitled to retain the option fee that us paid to the seller by the tenant in return for the option to purchase the home.  

That should have been done at the first sign of trouble.You need to keep a real estate lawyer on retainer to review all of your transactions and pounce on anyone who doesn't perform costing you money.

I've seen articles for documentation to retain as a landlord, but I want to ensure I provide my tenants will all needed documentation as well. 

But then I could sell and unlock the other 30% of equity and move on.So basically what I'm looking at here is either 1) sell and give the IRS 40% of my profits and walk away with $40k (assuming the above sales price works out... it could very well NOT work out this way), OR 2) retain the house, rent it out at $0 cash flow per year, but get a $100k check in 5 months to go reinvest.Is my thought process correct here?

Also, a liquIdated damages provision says if buyer defaults on completing the purchase seller shall retain the EMD.The question is, if COE has passed, and neither the seller or the buyer extended the escrow period or cancelled ON said COE date, and the only action taken was by the buyer 2 days after COE date to CANCEL the purchase pursuant to a loan disqualification, would that could as buyer default?

Do you need "a lawyer" on retainer to start?