Plus (I'm assuming) an HOA on the town home.Perhaps, if the larger home you all purchased had a legal separate residence...like a basement or an in-law suite...that would allow you all the tax advantage?

An aggressive attorney can get a lawsuit filed on Day 8 and take a default judgment 8 days after that if the defendant does not answer.

The school predicted (correctly) that lawsuits are a growing part of modern life.One of the real estate cases (New York State) I remember discussing was decided in an era when buyers had the duty to be aware of what they were buying.

The lawsuit route will probably result in a worse financial position. 

It's akin to the Oasis Financing (they advance money for slamdunk lawsuits at exorbitant interest rates).It sounds like the RCW 62.29.350 Finders Fee's law was made specifically because of him.My goal is to find leads from back taxes and close a deal with an owner, no promise of a foreclosure bailout.

While many new or less knowledgeable investors see syndication as a holy grail, the truth is that it may or may not fit your plan, it may or may not be achievable for you depending on your knowledge, skills, track record, experience, and ALWAYS carries a risk of having to defend lawsuits when investors are unhappy with results.  

That last thing you want is a lawsuit for a violation of the FHA (Fair Housing Act) and ADA. 

He  lived in unit one and air bnb-ed unit 1's "in law" suite.

We dont want any of our properties to be forced to sell for the equity after a potential lawsuit. 

At the city council meeting last night, there was a lot of talk about the Bert Harris Act/Private Property Rights Protection Act, and the number of lawsuits that would follow in the wake of this ordinance if it passes.