This is normal, and while you do not want to spend money the first thing I would do is get an attorney to review the contract. 

Can someone suggest the best options for us or any experience the same? 

Hey @Michael Zandona, I would suggest that you make a deal make sense without any tax benefits.

I'd suggest either going 100% PM or 100% self managed. 

I think you have messed this one up bad enough that its time to let her go and start all overI would do a letter like Greg suggested.... there is no contract/deal until paperwork is signed ..... after her long delay, you have reconsidered your terms for her renewal..... these are the new terms, take it or leave it.

I had an emergency water heater issue, here how they treated  me1) They have few plumbing companies they deal with who have horrible reviews and you have to go with them and wait for atleast a week before they can approve you.2) Once their tech diagnoses it,  Now AHS says installation is not covered and they want to order a water heater themselves which would take many days.

Thanks for all the feedback and suggestions. 

I suggest asking for a rent roll that includes current tenant balance just to see how healthy the rent roll is. 

I have been wanting to invest in real estate and he suggested that I become a hard money lender. 

It was a nice 40 years there and the weather is great, but between the insane prices and the insane politics I just had to leave.I would strongly suggest you look a little to your East over in Arizona.