And I make sure I keep all conversations via email and text to confirm and have proof that I explained my intentions from the beginning BEFORE I sign anythingIf you don't fully understand the contract you are using (that sounds like a big problem), then you should contact the 3rd party that drafted it.

So I got the package of rental forms from WI Legal something or other, and on the initial agreement (M-M) I only required tenants to pay for "water"; not fully realizing that the Milwaukee water bill also has "sewer" and "muni" charges - which are far more than "water". 

So I'm not sure if the laws are different in CO, but I know here in CA you can purchase a backcountry cabin on Forest Service Land, but it is NOT LEGAL to rent it out, nightly or otherwise.

You can form the LLC via your state's government website and pay the applicable fees listed.When you apply for an EIN with IRS, you can to choose what type of legal structure, business, or type of organization is being established.

All Parties (current RTO tenant + Owner) have agreed to sell me the property (which I will not use my own funds, I will wholesale).

There are also many experienced BP community people to help you establish the legal entity.

My point is we are a community not just a place to party in the desert.

Doesn't seem like a business venture I should undertake without forming an entity for the legality of it all.    

First always seek legal counsel with an attorney:ask them the pros & cons of some of the following:1) Debt: secure a loan against the property you receive interest payments.2) Equity: record an option to buy the property (ex. you have the option to buy the property for $115k for a specified time period.3) Purchase a partial ownership interest, ex. tenant in common ownership of 50% of equity4) combo equity participation loan , you share in the upside equity.

Your lease contract has ended, either party van part ways now.