The constable service we use in Indianapolis not only shows up to remove any persons, they also photo document all remaining items and take them to a local storage unit.  

I'm going to redo the deduction summary ... reducing or eliminating some of the items that could be wear/tear (closet bars/doors, etc).

Total real estate ROI should include 1) cash flow, 2) tax benefits realized each tax season in the form of real cash (non-operating items such as depreciation, mortgage interest, RE tax), 3) equity.

we gave them last chance to leave peacefully - agree to several items they requested but not sign. 

The more i read about this model PAYNE the more i see it as a 2/5 star system with LOTS of problems down the road.

The only items attached to the loan is the purchase price of the property, the rehab, and any fees associated with your HUD consultant. mostly everything else is an upfront out of pocket expense. 

What would be the best way to set up our business model allowing for the most protection and tax advantages.

I upgraded to couple models above builder basic.  

Be sure to note in the move-in property condition report all items that are not attached to the building which you are leaving for the tenant's use.

It's a fun exercise to divide the replacement cost by your estimate of the items useful life to calc out how much you should theoretically have in your reserve fund each year.I'm a long ways from theoretical, but at least I know how far off I am.Best to you.