We do not have any legal docs explaining this arrangement, everything is in my name except for our bank account, is that okay?

I have renters who are hoarders and extremely messy.

This is on small deals when you get to larger properties you really need representation.No legal advice.

What you have is a legal situation.

It's perfectly legal to discriminate against occupations.

I will reiterate what Karen stated, you have placed your lenders in a very risky deal and opened yourself up to potential legal issues.

You do need someone to verify it is actually a legitimate, legal,conforming and enforceable note.

I'm just applying the 50% rule that says 50% of gross scheduled rents will go to vacancy, expenses (taxes, insurance, routine maintenance, make ready costs, tenant damage in excess of deposits, utilities at least when its vacant, CPA fees, legal fees) and capital (roofs, floors, appliances, furnaces, sewer lines, etc.)

@Joshua Hawkins, I don't have any specific person to recommend, but I personally been using Legal Shield (formerly Pre-paid Legal).

There are both legal and tax reasons to have an operating agreement.I suggest the books by Nolo Press.