As you said, you have no legal claim to the property so you actually have legal rights to file a memorandum since you have no interest.

We have a legal 2-family house under contract in Roxborough, Philadelphia.

The legal agreement you will have with them as the new owner will be what you have to honor - that should give the terms upon which you can cancel the lease or when it will expire and you can choose to renew it.  

You are going to want to talk to several professionals in your state for this one as it is a legal maneuver that amateurs or even professionals not familiar with the details of your situation on the internet probably aren't going to be able to help with much.

Our initial plan was to use the 203k loan to cover things done by licensed contractors in the first six months and then use the $100K private loan starting in January to do the rest.

-Gross Monthly Operating Income3,291.75 Monthly Operating ExpensesProperty Management Fees347.00 Repairs and Maintenance200.00 Real Estate Taxes250.00 Rental Property Insurance298.81 Homeowners/Property Association FeesReplacement Reserve50.00 Utilities150.00 AdvertisingMonthly Operating Expenses1,295.81 Net Operating Income (NOI)Total Annual Operating Income39,501.00 Total Annual Operating Expense15,549.72 Annual Net Operating Income23,951.28 Capitalization Rate and ValuationDesired Capitalization Rate8.00%Property Valuation (Offer Price)299,391.00 Actual Purchase Price167,500.00 Actual Capitalization Rate14.30%Loan InformationDown Payment33,500.00 Loan Amount167,500.00 Acquisition Costs and Loan Fees6,000.00 Length of Mortgage (years)15 Annual Interest Rate6.690%Initial Investment6,000.00 Monthly Mortgage Payment (PI)1,476.66 Annual Interest11,002.25 Annual Principal6,717.63 Total Annual Debt Service17,719.88 Cash Flow and ROITotal Monthly Cash Flow (before taxes)519.28 Total Annual Cash Flow (before taxes)6,231.40 Cash on Cash Return (ROI)103.86%

My husband worked at legal aid until just recently and spent a lot of time in eviction court while he was there.

In Canada we aren't allowed legally to take a deposit for potential damages, instead we take first and last months rent ahead of every lease . 

Limited Liability on you personally: If you were sued (a tenant is injured on your property) or had a legal case against you as a landlord, it would be against the corporation and not you personally so it can assist in protecting your personal assets in this type of situationThe title of the property will be in a corporate name but you, the investor, will be required as the owners of the corporation to also provide personal guarantees.

Tons of legal advice.