What about setting up an LLC and renting to the LLC, would that work?

You tell them they must vacate and do no damage then you will not take legal action against them (I call this the easy option) and you will then either allow them to use their deposit against what they owe you and/or set up a "promissory note" payment plan - which is enforceable by law. 

Our current plan is to try to get a variance because current zoning is set for 8,500 sqft lots and the property subdivided will only be around 7,000 sqft each.

I have both, mostly because I did not know about the SOLO401k when I set up my SDIRA.

I have found myself a business partner to move forward with on B&H properties and we have a meeting set up this Saturday night to begin discussions.

Set up keyword alerts and you will get notices of other meetups as well.

He has a good track record, but I have never lended money so I'd appreciate any guidance in how to set the terms and what steps are critical to ensure the relationship doesn't go south.

Not every tenant is responsible or cares enough to set up back up plans for these type of situations.  

HI Michael,the answer to all 3 is yes. since the properties are so close, one or the other would have to be a an Investment property. since this is your plan of action underwriting should have no issues as there is no means of mortgage fraud with what you plan to do. one thing you will want to keep in mind when qualifying for the new home is debt to income ratios, and having a renter with a signed lease agreement for your current primary lined up will off set the debt ratio helping you qualify with no troubles.let me know if you have anymore questions or want to speak privately! 

I get direct mail and cold calls from wholesalers.