You want to purchase hazard insurance for your rental property with a liability rider anyway, so the extra cost and hassle of an LLC may not really give you any more "asset protection" than the insurance policy already provides.There is no one-size fits all answer to your question.

I now have a solid:Purchase AgreementAssignmentandSub-Assignment (for other wholesalers who I'll offer $X(ie: $5k) to help me find a buyer)I've worked hard getting these set up the way I want (to provide safety yet stay short and look aesthetically pleasing), but I feel like they're pretty solid,look good, and are concise.

However, the heated and gross square footage and number of rooms on the appraiser's website matches the information in the MLS ad, so I assume the county at least knows about this conversion, although I can find no proof that it was ever permitted.Has anyone here ever had any electrical or safety issues with tenants after buying one of these conversions?

Don's list is quite similar to his.The only thing I have to expand on is before you start demo/trash-out, complete any critical safety issues that may exist before you break out the crowbars.

You should put your own safety and your brother's safety first.

When a property has been vacant for some time (the utility company knows this from their records), the utility company can consider it a safety hazard to turn on the utility service without some inspection and repairs being performed first.And repairs are probably something you wouldn't want to do.Also to add to his item #2, some utility companies either want to see proof of ownership of some sort, or a lease signed by a tenant and the known owner, to turn on utilities.

I know everything depends on personal circumstances but let's say the property is worth 104k...90% financed....insofar as liability and hazard insurance what is a good rule of thumb?

For the safety nets, which I thank Jon again for putting in the fore of the conversation, I have the cash on hand to pay off the mortgage on our joint property where my grandmother lives should the need ever arise.

Items 4, electrical issues with ungrounded wires and fire and safety hazard issues...need to be brought up to code before close of escrow.

They may flag a giant fire hazard, but all they do is walk through the property, takes some pics and look at comps.Unless things are done way differently in Hawaii, why would the appraiser ever contact the local gov entity that would have to do an INSPECTION to produce any type of code violations?