Please, also be sure to check out our free eBook, "Using BiggerPockets to Grow Your Business" for tips on the best ways to interact with BiggerPockets' members to increase your exposure and build your business.You can get it at http://www.biggerpockets.com/bizThanks for the understanding.

My long term exposure is $0 as any potential loss is limited to $1. 

I'm not a fan of the personal guarantee... isn't limiting personal exposure part of the reason I'm operating an LLC? 

You may need to do a separate Renters policy in your name to cover your exposure. 

All investments have some level of risk, but multi family real estate seems like a better place for consistent gains right now than stocks or other investments (and I already have lots of exposure to equities through my TSP/401k). 

Because of this, many investors see this strategy as a win in 2 ways:  first, they are able to invest 100% of their gains into another investment vehicle without paying tax and therefore gain the benefit of 100% of their capital's exposure to the new investment; and second, they are essentially creating tax arbitrage between their tax bracket rate and the flat recapture rate. 

Explain the potential tax advantage of spreading the seller carry portion of cap gains over additional years to reduce tax exposure in 1 single year plus the interest of course!

If so, you should have them shop it for a company that will cover the exposure of selling a property that you own (or flip)

Not sure what exposure he has to wholesaling but is a good place to start. 

Economics is still half art and half science at this point.I was just in a similar situation with a condo I owned, basically lost money with maintenance costs but had been appreciating like crazy.Sold it and did a 1031 and it covered most of the 25% down payment on a 4 Plex that should cash flow very well after the renovation.I view this a good on all fronts, just plain business sense and if inflation does happen I have way more exposure for it to be an advantage for me by having 4 units with rents that can go up and a larger asset that can appreciate.