You would have ongoing filing requirements with the State and would need to keep business records and documentation.

From what I remember, Utah residential code does not require foundation drainage and therefore, no window well drains (where would it go?).

Even 'builder templates' or stock plans will require their own trip through the City for permitting.

Recording it will require you to pay off the loan in entirety in most cases unless the new bank is willing to allow the remainder of your private note to subordinate in 2nd position which most national banks do not allow. 

You can get a judgement against him, but to to get a lien on his property would require much more than a judgment. 

Your return on a real estate investment is Cashflow and Appreciation.It appears that your cash-flow is negative if you assume the current FMV.The question on whether to keep or sell it is what your required rate of return and what is the appreciation rate on the property?

I search on google but all I get are articles and lenders who require higher appraised properties.thank you

I'm usually not a proponent of cash flow negative deals (assuming 20% down and calculating putting aside at least 15% for maintenance/vacancy/capex).

Down Payment: Lower down payments, such as the 3.5% required for an FHA loan, let you keep more of your funds, but they also result in higher monthly mortgage insurance costs.

Vacancy, property management, repairs, maintenance, and capital expenditures are all MANDATORY expenses.