So my exit strategy is more in tune with a turn key operation.

I guess to avert analysis paralysis, I'm looking to dive deeper into the flip side of things and get a deep understanding into the day to day operations on the business end.

This practice is less than attractive, IMHO to any newbie investor; especially when the discussion was to have, at a minimum, 3 separate series, 1 to buy and sell (flips), one to hold (rentals), and one to handle operations(PM or day to day OPS).  

Effective Date: 10-06-1980 5313.09 Instrument of cancellation of land contract.A judgment for the vendor shall operate to cancel the land installment contract as of a date to be specified by the court.

Though you didn't record the note to secure the property with a mortgage, you can still make it difficult for him to operate and potentially raise more money when new investors check him out and see his history.Don't take it lying down (so to speak). hopefully more people will chime in.

I lived and operated my REI business in portland for a number of years and am now based in Charlotte, NC.   

Now, someone told me that I could create an Operating Agreement detailing the arrangement with the contractor, the idea being to give the contractor confidence that everything is on the up and up, and he is adequately protected.  

The operator you go with is critical for a chance of success.  

If there is a facility, you will have a higher electric or heating bill....both to heat and cool the facility and to operate the units.  

I am currently looking for a multi fam where I will live in one and hopefully the other units will cover the mortgage and operating expenses.