Some just choice their living arrangements a little different then other.Awhile back my brother-in-law was very curious about how he could get to doing what I’m doing and the number 1 reason he say he can’t because of “my sister”, she say she just don’t want to be a landlord.I am on the verge of getting a HELOC to get my next investment all because I didn’t travel the same path of my family members thought process.If it’s something you believe in you have to stay focus on it.

I arranged for contractors to rehab the property and their apartment is now worth much more than when they bought it and they are able to rent it out part-time to cover the mortgage.

Simply ask the tenant if they wish to stay, making their own arrangements, or go.

And if you would include your actual area (since everyone will say “yea but my arrangement is more expensive”) that can be taken into consideration.

I would love to see a sample of the 2-page document explaining the arrangement. 

The active participation standard can be satisfied without regular, continuous, and substantial involvement in an activity; the standard is satisfied if the taxpayer participates in a significant and bona fide sense in making management decisions (such as approving new tenants, deciding on rental terms, approving capital expenditures) or arranging for others to provide services such as repairs.An IRS training manual states:As long as a taxpayer participates in management decisions in a bona fide sense, he actively participated in the real estate rental activity.

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

Lastly, you have your loan arrangement with the bank where you might be able to hand the keys back to the bank in lieu of foreclosure.   

Equally responsible for late fees ect.So all you need to do is take the money, you don't care how much one pays verses the other, they make that arrangement among themselves. 

For the local wholesaler, the business arrangement would depend on that person's needs and skills and I would fill in the gaps (marketing management, follow-up systems, lead management, etc).