The issue of your partner using a loan/mortgage on This property, as opposed to bringing cash, is another matter which as Jerry said, brings additional risk to you.

Sort of.But.. if the contract prevents it there really is no way around it.

So, hoping for $11K net profit to me and $11K to another investor within 3-4 months.We will split additional profits/shortfalls proportionately.

There is a possibility your tenant could get canine liability insurance -- they say State Farm and Farmers both offer it, and, if not, there are other insurers that do, and list you as additional insured.

I could get about $500/mo in rent on the additional unit after putting $3k-$7k into it.Suggestions or advice?

If your offer is complete with all required initials, any lender required 'verbiage' and/or SS addendums and updated proof of funds .. it will prevent delay's but might not make it go 'faster' per-say.

Additionally, it's looking less likely that we'll have as drastic a reduction in income as originally stated.

The additional rental income will almost cover renting a single family for us to hop into, but if we don't have to I would prefer to not incur the additional expense and potential stress/upheaval.Ultimately, I am desirous of using the value of our equity as a contribution to a down payment, along with some savings, towards a future loan on a more appropriate setting for my family.I am open to selling, switching, stripping (equity), or other necessary means so don't hold back your suggestions.

This prevents things like "the LL said my security deposit would be applied to my last months rent (no your SD is for damages and will be refunded AFTER the last months rent is paid and any repairs are deducted), "the W/D,fridge, stove... are mine not the previous LL's", "I signed for $500/mo rent but the LL said I only had to pay $400 as long as I mow the grass and do the snow removal" ect2) Now you need to know if the LL might have placed higher than market tenants using some sort of a teaser "no SD required" or " free first months rent (but higher than market rent for the remaining lease term)".

Maybe you have a minimum heat requirement that is intended to prevent frozen pipes; the fact that pipes froze would indicate a violation of such a clause / addendum.How easy would it be for you to actually collect assuming the tenant admits / concedes guilt in this matter?