I would never consider making improvements to a building that I did not own yet under any circumstances whatsoever.I think the error you made is in taking an FHA loan.

Given these circumstances, I look forward to receiving rent on the 11th including a late fee, per our lease, bringing your grand total of x. 

Partnerships can be a great tool, but they come with headaches - people change, circumstances change, markets change, etc.

Ask (nicely) for an extension and let them know the circumstance.

Lawyers are not hard to get; you could have gotten one in the time you were waiting for responses on this thread.Buying from a wholesaler is probably a bad idea for someone in your circumstances even with a lawyer. 

We are going to invest into MF in WI or IL.I wasn't able to find pros and cons in a google of where to create a LLC and what the circumstances would be.

Every property is different, with different circumstances. 

You are required to live in it for 1 year unless a life changing circumstance arises (change of job in a new city, divorce, ect).

You just want to be careful so you'll never be accused of denying someone if you approved someone else in that same circumstance.  

In some circumstances, the Act exempts owner-occupied buildings with no more than four units, single-family housing sold or rented without the use of a broker, and housing operated by organizations and private clubs that limit occupancy to members.”Being that it is a single family home and I am not using a broker to try and rent to him.