I realize I can modify our operating agreement to reflect this transaction and his obligation, but it doesn't' sit the same way with me as if he were signing on the dotted line at closing.Please share your thoughts and if I am overthinking this,but if something were to go south or future disagreements I feel like I would be left holding the bag in this scenario.

I have funded escrow and completed by side of the agreement.  

You need to go back to the purchase agreement.  

If we needed to add a JV or some other agreement because of the auction Im sure she would be fine with that.  

@Andres Diego I had to get formal appraisals done on the properties and then I had to submit those along with the purchase agreements to the IRS.

If not, as long as the lease agreements document what the security deposits are, and you are able to provide a bank statement with that amount of money in it, you should be good to go.

LOI is just a handshake agreement it's not legally bindingThen next have a feasibility period or more specific contingencies (financing, inspection, etc) to do the rest of your due diligence on the property to protect you as you move forward

You can likely visit the property before agreeing on a price with the seller, but it is extremely unlikely that you will be able to schedule an inspection before having a signed agreement with the seller.Good luck!

I have an agreement with an owner of a SFR with 10 acres (7 acres is buildable) in Stow, MA.

@Brent Coombs, formalizing the agreement in writing is definitely something we view as necessary.