If your partner is not ethical you could have real issues, and there is also the possibility for one partner to not pull as much weight as the other partner.

In addition, your holding costs are way too low.Holding costs - Prorated property taxes, Insurance, Utilities, Interest on loans, LandscapingBest of luck!!

Simple because in a court of law the contract holds no weight due to it being an illegal service to begin with.So the scorched earth response Jim K said he would do it not only impossible in this situation, but also illegal if he actually succeeded in get an 'eviction' on her record.

Additionally, if you are able to become really good at navigating the new tenant laws this could be a competitive advantage for you.

Now, I know the object is to keep expenses low and profit high, but could a few simple additions increase your bookings?

Should I take out a HELOC or HEL on my primary residence, and use the funds from that to make a down payment on additional properties and then obtain a conventional mortgage on them?

Just completed a large remodel on my primary residence ($90k in) with the goal of refinancing to consolidate some personal debt and pull some additional cash for other real estate related projects, BUT ran into a road block with a lender.

(once I move out of the property and optimize the rental income from the additional unit)

The term "material amendment" as used herein shall be defined to mean additions or amendments to provisions of these Bylaws which-establish, provide for govern, or regulate any of the following:  (a) voting; (b) assessments, assessment liens, or subordination of such liens; (c) reserves for maintenance, repair and replacement of Common Elements; (d) insurance or fidelity bonds; (e) rights to use of the Common Elements; (f) responsibility for maintenance repair of the several portions of the Property; (g) expansion or contraction of the Property, or the addition, annexation or withdrawal of property to or from the Property; (h) boundaries of any Unit; (i) the interests in the Common Elements:

As long as the rent still covers the payments you should be able to leverage the money to either buy an additional rental unit (using that units future rent to help qualify) OR use it as a down payment for either an equity partner or hard money lender for a fix and flip in your area.