Did you not notice it was missing when they sent you the good faith HUD form? 

It is important to note that my business partner is a family member and we are aligned on pursuing whatever strategy is most optimal for our main goal of acquiring as many properties as possible collectively, regardless of ownership percentages on paper. 

This PM will be trusted with the accounting, collection, and transfer, of tens of thousands of your dollars, or more.

For example, their rent is $2000, they pay me $1000, I then apply the $1000 to the renovation project, which they estimate to be around $8,000.How should I write up the lease agreement as far as collecting the rents?

The first commercial option was sold to someone else and we are in escrow for the condo one but ready to fold that deal due to several reasons that have made us lose faith that this is a good investment.

I do recommend something to collect rent that is NOT check, Venmo, CashApp, Zelle one day one.

I remember even during Covid we sitting pretty collecting all of our Section 8 rent checks.....The County Wake housing authority blows the big one.

If they fail to pay, then you can consider taking them to small claims court or filing with a collection agency. 

A bigger concern is someone who clearly fits the rules as they are written and intentionally acts in good faith, only to have the IRS comb through their time logs and arbitrarily finds some of those time entries invalid and/or inflated.

This is what I think I know:- The borrower can choose to pay off the note at any time (by selling the property or just paying off the loan with other funds), so it is important that the legal balance covers my investment and some profit- The borrower could file bankruptcy (can someone confirm that this will only cause delay, but not jeopardize ultimately collecting the legal balance of the note)- Most of these DOTs will have a rent assignment clause, so I could try to enforce that and collect rents from tenants (essentially manage the property) while I am holding the note and trying to foreclose.