The property may not have any vacancies, but if it does, just make sure you have enough reserves to cover that. 

In this market i would only go that route if you have the resources to cover their initial investment so there would be no loss of capital if things go bad.One of the syndications that i am an LP buys MF, rehabs the existing units, converts tbe garages into max number of studios, brings all units to top of market rent, and exits with max NOI.  

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

., funding, management, deal sourcing) based on strengths.Bylaws to Include: Cover profit/loss splits, decision-making processes, buyout clauses, and what happens if the partnership ends.

This allows you to pivot when you can get a more favorable situation.Renting:Pros: Flexibility, less upfront cost, maintenance covered by landlord.Cons: Limited equity building, rising rents can strain affordability.Buying:Pros: Potential for long-term wealth building through equity and appreciation.

The guest stay with discount and toilet replacement did not cover the cost of the unit for the stay. i have the issue on occasion that the guest is expecting a bigger unit and thinks the price is high but they do not realize the value of the unit.  

I profited well but not enough to cover 6 months if they were all slow months.

OK got it.. there was a promoter in Utah that did the same thing on assets in KC. 

Also, the quarters didn't cover the expenses, is my recollection. 

You could also offer to cover part of their tax liability through negotiation or encourage them to convert the property into their primary residence to use the IRS exclusion for up to $250K/$500K in gains.