@Mark Hicks the loan will only matter to the extent that you have to obtain a payoff, and often you need the cooperation/authorization of the borrower to obtain one.

Is it worth renovating to make the unofficial bedrooms official bedrooms? 

Is there official email I should send to protect myself keeping the SD so that we can officially end the lease early?

, how he had/has those investigators unsuccessful in trying to pin him to any property, and how authorities resorted to what seemed like kidnapping and holding him in jail for ransom, which is completely unconstitutional BUT effective as the family gave up just a tiny piece, enough to satisfy the authorities so they could call it “a win” in the eyes of the public.That was pretty extreme, but it does show how well asset protection, when done right (within the letter of the law) can be very effective at protecting asset.

Im officially a real estate investor! 

Ask questions like will you pay a cap to your broker in both states, what is each cap, is there an extra brand fee (sorry I don't remember what the official term is for this, but some brokerages charge 6% more) and is this extra fee for each state essentially doubling your expense?

If no, please cite the authority.#2: Taxpayer B leases and lives in a $2,000/month apartment used as a personal residence.  6 months into the 12 month lease, the landlord discovers a new "higher and best use" for the building. 

Also, just to clarify, are you saying to first write my own LOI (making sure to include a time frame of when an official offer will be drafted upon the acceptance of the LOI offer), then once I have come to an agreement with the owner, go to a real estate attorney who will look over my LOI?

I am in charge of putting together a rough outline of what the partnership structure will be before we get a lawyer involved to make it official. 

Check out the great BP library of books as well as the wealth of information out there from other authors as well, and don't just focus on RE!