There are some exceptions, but I tell most people to avoid it.

I've asked lender multiple times if there is any way to avoid it and they answer is a consistent NO.

Because I want to continue investing, avoiding paying the personal gains is what my mind is occupied with. 

we are currently located in central mass, but looking to expand into western mass. 

One thing you want to avoid is making the asset to unique that it is difficult for an appraiser to comp out. 

We want to avoid letting money just sit in the bank account when we know we could be making it work for us.

To avoid these, create an operating agreement outlining roles, responsibilities, financial contributions, and handling disagreements.

My understanding is the Padsplit’s member agreement model is to avoid such situations.

Scope creep is a huge problem and the more you learn up about the project up front, the easier it is to figure out what actually needs to be done and avoid surprises (or pass on deals that need more than you initially think): https://www.biggerpockets.com/blog/due-diligence-ultimate-gu...I highly recommend building a contingency (I do 20%) into your rehab budgets for unexpected issues.

People use anonymous structure to avoid this.