Also, explore creative financing options that might balance your partner’s limited credit/cash flow without putting all the risk on you.If you're attorney can't clearly articulate this, maybe it's time to find a new one.

Not only is it free money, but you probably can't beat that return.Research the 55 year old 401k exemption.

An LLC is not free.

They were totally overlevered, undercapatilaized, and were taking risks like a large hedge fund.

I think funding someone else who is experienced when starting would be a great way to reduce your risk.

You are right about high risk of default.

So if you buy a 5 bedroom house and rent the spare 4 bedrooms = you can still sell tax-free under the 121 (you just pay back depreciation) If you buy a duplex and rent 1/2 and live in 1/2.

We've all probably felt a little pain this year with rents and longer vacancies due to all the inventory coming online, something like 50,000 units in 2024...so plenty of vacancy and free rent while those get leased up. 

What are the risks?

Out of state BRRRR or flip is probably the highest risk strategy that you can choose.