If you are using a handyman they may not know how to build a proper waterproof pan with tile.

So, when you are looking for multi-unit properties to purchase and the marketing package indicates the annual expense rate is less than 50% you need to challenge that number because the sellers innocently or purposely deflate the numbers and you should always change the rate and base the price you would pay for the property at 50% because there are many factors that change the expense rate i.e. the sellers were cheap and did not maintain the properties properly, deferred too much maintenance, or they personally did the repairs and you may not have that ability.

If they don’t respond or react quick enough in this market, how do I know that they can secure what I want when time is of the essence?

But I do want to get our business set up properly so that when it does grow, the program can grow with it.  

We've already agreed on rates, and I'm going to ensure all the paperwork protects me just like it would any other lender (proper contracts, personal guarantee, etc)The part I'm unsure of is what type of entity it should be under, just a regular LLC?

If you bought notes in a judicial state you have to file proper demands, complaints and go through the court system.

You won't have to deal much with POS requirements if you stay below $100k on a rented / rent ready property as mostly in that price range, you would be looking at Cleveland proper and not the surrounding suburbs that have the POS requirements. 

How can I properly document this in case he tries to come back for the remaining 50%?

It likely was not pitched enough to provide proper flow to the vertical stack.

It just means you were able properly fill out paperwork and pass a test.