Refi with cash out has been proposed but I am reluctant at this time.

Write a clear notice to all tenants and have them sign, even go as far as sending another copy through certified mail, a letter stating your intentions to make changes to the lease, and the proposed changes.

There is also the potential for change orders, once the build starts and you realize that the build plans aren't what you wanted or something just needs to change.Now for some specific's of your proposed build.  

The states are cracking down on this issue big time (just check out the new legislation in Ohio and Illinois - Illinois being the most aggressive new legislation to stop wholesaling the way it is currently being taught and done - there are more states working on similar legislation).

Both the appraiser and the broker can also provide you with the true AS-IS value.I'm not sure I'd worry about splits until you have market analysis data to support your proposal. 

A new proposed Airbnb ordinance in the Springs has me wondering whether it's now or never to buy an STR investment in some of the most popular areas of that city.Just last year, the city council passed an ordinance allowing short-term rentals in any kind of investment property.

Sweeping legislation for employee rights paired with major decrease in immigrant workers.

I'd also probably have a lot more empathy for the situation if this agreement hadn't been one that SHE proposed. 

That's in part a result of Series LLCs being complicated to set up and thus more expensive and thus more money that an attorney can charge you, part a result of it being a shiny new toy that every attorney wants to try out and set up, and part a result of attorneys wanting to provide maximum, duplicative, redundant protections for their clients (no lawyer wants to be the one who assures their client that their LLC is foolproof or to say that their proposed course of action will be fine only to later watch that client lose their business, home, car, coin collection, etc.). 

If you're ready to work, what I might propose is something more akin to: equity earned tied to a per hour worked basis.