Going from a SFH to a duplex will signal to the underwriter (correctly) that his intent is to utilize the FHA home as an opportunity to "house hack." 

But, when doing lots of transactions, it's important to maximize efficiency -- in other words, retain the most pennies of profit for every dollar the business earns.A real estate investing business is no different than any other business that invests money in product in hopes of turning a profit. 

Tenant retains a copy. 

The dilema here is if the seller chooses to take your advice and retains a listing agent, then it may put your deal in jeopardy since the listing agent representing the seller should recommend the seller instead list the property in the MLS for a possible higher net.

They also have a ton of material on all of this and seem to know what they are talking about.Do all of these attorneys work on retainer or can I interview them for free?

If they are good people, stress free, boring, and take care of the property then I might reduce the rent a little to retain them.  

If the lease is modified to accommodate the tenant, the tenant has been signaled the lease is not necessarily something to be followed.

I came across this:Some lease agreements contain clauses that allow the landlord to retain all or part of a security deposit upon the breach of the lease.

Taking a DIL is receiving full payment of the debt, so you'll have a tax liability as if the note had been paid in cash if this note was an equity funded transaction in selling the 1/2 interest, including that profit, if it was cash loan it's the same as a payoff.You'll then have a new adjusted basis as to the 1/2 interest to apply in a future sale.Profits in the tax qualified plan should be retained tax deferred as other earnings after the liability if any, net income. :)

Also claimed damage to the property for his right to retain their deposit - this is with regard to the previous tenants.