It also could prevent them from being unhappy at you for any decision the "owners" made. 

Probably not, you'd probably only consider this because you had bad credit or low income or something that prevents you from living in a safer place.I bet the turnkey provider has rents too high for the area as well...Can you make money on this type of asset...sure but not by paying 70k for it.

Taxes/ year: $3,002,  Insurance: $1,573,  Trash/ year: $654,   Electric/ year (exterior lights): $420,   Water/ year: $1,200 sewer/ year: $1,500,   Spray for bugs/ prevention: $311/ year,    Lawn cutting/ year: $640,   Misc (furnace filters/ 9v batteries): $250I have gotten mixed reviews back from my colleagues when they go over these numbers with me.

Hope future lawsuits help set more precedent that prevents even mild predatory selling tactics.

Lesley, the article you just posted states the following: "Note that there is no limitation preventing the Fund from borrowing cash in order to purchase or improve the property."

The same problems that are in bad areas local to you that you prevent you from investing there.... yea well they are the same or worse when going OOS.

I know Im using the wrong terms here and will prob get blasted for my wordage here.I also know he'll need to be able to buy what he wants, so this existing mortgage on his name may prevent him from being able to get approved for the next mortgage he wants.Unless the paperwork showed I was buying it, or lease to own it from him.   

While this potential deal does seem to good to be true, I certainly want to do my due diligence in preventing this from taking a wrong turn.What i learn i will share and report back soon!

The rules don't change much in terms of what is tax deductible just because it sits in an LLC.You are correct in that putting it in an LLC prevents you from getting government agency (i.e. fannie) backed debt, which is allowed on up to 4 unit buildings. 

Will your current employment prevent you from doing that?