Any liens that occur after your loan would be the responsibility of the borrower and would be subject to your loan.

The legal consideration exchanged is their rent paid to you on the schedule outlined by the new lease and the home you just agreed to provide them.  

Mark,Did you purchase this property subject to and then wrap it to the current owner?  

You'd be subject to the banks due on sale clause for the loan.4.

Any room rental use not conforming to these conditions shall be considered a boardinghouse, lodging house, hotel or motel, as applicable, and shall be subject to the requirements for that use.A. 

A couple of books to read on the subject that are really good, Garret Sutton who is Robert Kiyosakis "Rich Dad Poor Dad" asset protection attorney- has wrote several books and just recently released a book that is new.

The plan is outlined below pretty simplistically but I am wondering what kind of growing pains I should expect for this plan:Year 1) Purchase a total of 8 units via SFHs and multi-units.Year 2) Purchase 16 Units via SFHs and multi-unitsYear 3) Purchase 24 units via SFHs and multi-unitsYear 4) Purchase 32 units via SFHs and multi-unitsYear 5) Purchase 40 units visa SFHs and multi-unitsI have around 25 - 30k of my own money to start this operation with roughly 85k of HELOC available to me. 

If it does, you'd be subject to those laws and would be limited to whatever the city sets for rent increases.

I am a novice when it comes to this subject and I could use some referals for a company that you know or may have used in the past that took the time to explain all steps.The house is a $125,000 property 8 minutes away from downtown Stone Mountain, GA and will be sold in the next month or so after the proper 1031 proceedings.I appreciate all the help I can get and thank you for taking the time,Best of lucks!

This agreement will outline initial contributions; how each partner/owner may (or may not) increase their contribution (and ownership); the guidelines for dissolution, succession; whether a partner may sell his/her interest (and the process, etc).You and your partner-to-be should jot down a bullet list of what you have in mind, then sit down with an attorney to draw-up the actual agreement.When it comes to property management, I like to keep it separate from the ownership agreement.