I mean if they pay late and pay the late fee they are back to being a tenant in good standing in my book. 6.

:Proper (https://www.proper.insure/)Steadly (https://www.steadily.com/)Just curious if they actually pay?

The owner of that property in question cannot restore his full VA entitlement until such time as the VA loan is paid off in full.Further, even if you gave him the 3.5% down on FHA, his DTI will still be hit with the payment on that VA loan, almost certainly killing his next home purchase before it even gets going.And if he gives up on homeownership, all the future potential landlords are going to see that mortgage on his credit, and likely consider him unqualified for the rental unit.Unless someone is going to write a check to pay that VA loan off in full, this is a predatory activity and the victim is the owner of the home in question, given his goals and the proposal on the table.Do the right thing.

Also, I want to have an additional income stream to my pay. 

I am paying $39 a month to have them as a registered agent.

When he went to draft up the contract he made it a Confessions of Judgement contravr in which I waive all my rights and if any of my "associates or friends" talked about him I'd have to pay half a million per offense, and he could easily claim a violation happened that never did to collect half a million dollars and I wouldn't be able to do anything about it.He consistently threatened me with legal action into trying to get me to accept that crazy contract.

If your market is showing SF zoned comps for a ADU addition that match or exceed hands off cost of adding a ground up single ADU, your market would be rare if not unique for CA. 

He mentioned they’ve had trouble paying on time lately.2) This place rents for $1,500 now, could be as high as $1,650 fixed up more but the total mortgage payment with taxes and insurance would be about $1,500-1,600.

I am looking into hiring a boots on the ground for real estate as well as a lead manager for follow ups. 

I am working for a sponsor who is raising capital for 2 ground up multifamily development projects.