You might consider some kind of earn out so the current owner had a defined financial incentive to remain engaged during a defined transition period.

I think there is like 4 more years of construction scheduled so the rental market should remain strong for at least that long.

If I refinance to a 30 year at 4% interest rate, then I could lower the PITI for my current house to ~$1,600/month, which would bring me to basically break-even currently, and then expected to start cash flowing a few years down with rental rate inflation. 

Send them a text, email, or phone message asking where you are to send the remaining deposit.  

I would say my tenants have rented mainly to remain "fluid."

If you have a lot of foreclosures for example, the remaining owners have to make up more than their normal fair share.

For purposes of determining the VA guaranty, lenders are instructed to reference only the One-Unit Limit column in the FHFA Table “Fannie Mae and Freddie Mac Maximum Loan Limits for Mortgages Acquired in Calendar Year 2017 and Originated after 10/1/2011 or before 7/1/2007”.Aaaaaaaand a link to the table referenced - for 2017.As of today, for VA, in the county you mentioned, it's $636,150 regardless of unit count.Anything over that, your friend is coming in with 25% of the difference assuming a full remaining VA loan entitlement.

When we renew the basement or turn over that tenant, we will push the remaining 40% of utilities. 

You will get the down payment, and cash flow the remaining rent.

I was originally planning on jackhammering it out myself, hiring a dumpster, and replacing the structure with a basic 10' x 10' paver patio and seeding the remaining ground for next season.