We both like the deal and consider it a win-win.I am looking for advise on what needs to happen to make this agreement legal, what to include in a contract, and what to consider when determining a proper investment price by me.

Your project sounds like a great opportunity for you and your partners to all win.

Generally speaking, if you were to compare what you could save collectively in interest by paying off the existing loan today, versus the capital gains that could be made by buying another (or multiple) cash-flowing, properly wedged deal(s); buying a second property will win in the long run (and by a sizable margin).The only way this theoretical second property wouldn't win in the long term would be if property A was held with an ARM and subject to a crazy high interest rate or something like that, and the ROI on property B couldn't outperform the interest rate on property A.

Plus it is going to be incredibly tough since it was Section 8.Chalk this up as a win having a great Section 8 tenant and move on. 

Additionally, the bond pays a coupon payment every month with that money automatically being reinvested in to the same fund, so we are instantly receiving compounding interest.

As for accounting I don’t think you’ll have good outcomes when you don’t “divulge” info to thembut thanks for #4 that’s a winning attitude and I mean good luck sincerely 

Also, remember the tortoise and the hare, just because you got off to a fast start doesn’t mean you will win the race.

Let them know that if you win, they will have to pay the court fees and will be liable to repay you the entirety of the lease.

He also says he intends to permanently end it (if he wins the next election). 

I get a higher fee, I earn points with the Landlord for increasing their bottom line, the company is happy, their employees are happy to be living in something better than a flea-bag motel, and it's a win-win for everyone.