If you have decided to avoid a fight to inforce your rights, based on my opinion that the tenant is lying, your best option is to non renew at the end of her lease and in the future only offer M2M leases to applicants.

@John LeavelleHahaha, yeah I was writing in the future tense I suppose. 

Have you considered getting a job with a developer maybe starting on the leasing side of a new construction building and get an understanding for that side of the business and see if there are future opportunities in the property management then development side?

Hopefully we can help each other out in the future.

If my two assumptions are correct, "A LLC" will be exchanging its current duplex into a combination of 50% interest in the land (purchasing it from JS) and a duplex to be built by "A LLC" in the future.

The variable rate might make this property un-affordable to you in the near future. 

Create the seller financed piece as a $50k second lien mortgage at an agreed upon rate, and explain that you’ll pay down the $50k note to them (which they’ll be earning interest on) and after a year or two (when you can shore up your credit/income requirements) you’ll get everything refinanced into one loan so that the seller and the original lender are paid out.He’ll collect interest on his $50k before being cashed out in the future, and you won’t have to go through a bank.

So while the first section might be too late to do for your sister maybe it will help someone else in the near future.1.

Great place to get your investor future started, and an excellent way to learn about real estate is buying and selling undeveloped land.

We want to do this to get access to more conventional loans and for asset protection reasons in the future (I don't want to make two separate LLCs for the two properties I own in the state.)