I've been trying to secure a deal and arrange potential partnerships.We should talk sometime.

I bought a mismanaged and neglected property with rents that were 1/2 market value. 4 of the 8 units are month to month so after a month of ownership and being onsite and starting to turn things around I’ve sent a notice to thaws 4 tenants that their rent will be increasing by $250 in 3 months time which allows them enough time to make arrangements to either find more money or another place to live.

The past owners used the building as related living so it was an acceptable arrangement, however, one individual controlling the temperature would not be sustainable. 

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

For example, you are going to have to have an attorney setup some sort of arrangement between yourselves and the LLC so that the LLC makes the mortgage payment.

This must be done with a special deed of trust provision as a means to avoid the foreclosure process...IF such arrangement is allowed under state law.

I'm wondering if anyone here has experience with this type of arrangement or can provide insights on how it could work in my case.Specifically, I have a few questions:Lets say they owe $40k left at 3% would I just pick up this loan?

If the tenant claims the water people are a no show, I'd make arrangements to be at the property yourself when they come and that way you know what is really happening and you can also do an inspection of the property.Surely if they've had your address for the last 4 years, they should have said something before especially as your property taxes would have been paid-so they know how to contact you.

You could also entertain some type of Open Listing arrangement. 

The judge will see it as an arrangement made with the tenant regarding that month's late rent.