We will not allow a tenant to pay large sums upfront if it could result in a significant tax liability for the owner.

I am looking for a insurance company that is coat effective and works with fix and flip/construction property and liability insurance.

That does NOT change your personal liability for the debt.

By being "disregarded," it does NOT mean that the entity has no legal standing --- some people think the limited liability protection is reduced or not there because of this tax filing status.Hope this helps. 

It also prevents giving me the added burden of additional debt liability should something happen and there be massive unemployment or another rent moratorium in the short term.

I presume it would be advantageous for my in-laws to pay back that $250,000 in multi-year installments to limit their capital gains tax liability? 

Entities like LLC's are for liability not privacy.

It sounds like you and your best friend have a solid plan in place and are eager to get started.Regarding your question about structuring your business, you're correct that forming an LLC is a common route for real estate ventures due to liability protection it offers.

I think it depends on the department and could lead to liability issues, but I've seen it done.

Also, it's hard for folks to put assets and liabilities side by side, because for some, they have a negative net worth - and facing that fact in black and white is not fun.