The partner needs a way to control his risk if the rehabber doesn't perform.Another is...rehabber might select the realtor and sales price, but the realtor sucks or the rehabber is being unrealistic on price the house sits on the market.  

Remember you don't have to own a property to control it.

Will use professional management company to manage it and keep it under tight control (no drugs, etc)My partner and I are not experienced in large deals like this.

We are however displeased with the lack of communication from this company...they do not respond with emails or phone calls...when we have inquired about invoices for services...and a very high pest control bill showed up...which they took out of our rental income...without even notifying us of this expense.

Honestly, I divested all of my 5-year contribution monies from my ROTH and divested into RE when I realized the stock market rises and falls for reasons completely out of my control.  

Interesting observation..Eight of us were working on the intensive drive control commissioning of a large complex & the all knowing management decided to create an office for each engineer. 

He has two other properties he could move into and still keep control of the other units, I know it's backwards and illogical WELCOME TO MY WORLD!  

Taking control of my life!

What is appropriate is a properly constructed package built on a solid commercial policy form with the ability to offer appropriate coverage for assets under any stage of occupancy or renovation, a simple monthly reporting format with no minimum earned premiums, the ability to waive co-insurance requirements, with no location limits, with the ability to insure multiple controlling entities, offer coverage in all 50 states, special form coverage with theft and vandalism and the ability to actually reduce premiums incrementally by aggregating locations, just to name a few little things.Hope this helps.

Signed lease, partial payment, transfer of possession and control of the premises smells like a tenancy to me.You would be wise to see an attorney, and quickly.