An added bonus is the asset liability protection, but I realize a good insurance policy is an adequate substitute for that too. 

This also was foreclosed on back when the tenant protection act was still in affect.

I believe your potential partner is looking to ensure that his money is protected and that you don't run off with it. 

For those not aware Costa-Hawkins affords certain protections to property owners in California.  

I assume that one would make this in order to send out yellow letters to find out whose interested in selling...I've created entities for asset protection so that my personal information is kept out of the public eye.

Be sure to protect your renters and yourself.Mike

How did you come to  a price, and how are you protected in the deal?  

If you have all those bases covered, conventional all the way as it will protect you in the long haul against fluctuations in the market. 3.

Ask a lawyer ANY question and the answer will always result in a recommendation which will require some legal service (and their fees).Don't get paranoid on "Asset Protection" - - just forming the legal entity and getting title in that name does not inhibit lawsuits nor insure you're immune from losses.Then there's the practicality of getting a loan in the entity name - - not trivial. 

The paint will protect it, so tuck pointing and repainting should resolve the issue.