Include a buyout clause allowing you to transition to sole ownership after two years, based on a pre-determined valuation formula or market value.Use an LLC to hold the property for liability protection and pass-through taxation, ensuring both partners benefit from depreciation to offset rental income.

Hey Steven - An LLC is a solid choice for structuring your partnership since it offers liability protection and keeps things clean when splitting ownership and profits.

And in a severe duty application like renting to section 8, you probably have to do that every 30 years.In other words, your portfolio carries a $1,320,000 future liability ($60k x 22), which equals about 22 years of present-day cash flow.

Here is what the IRS says on the subject: Election for Husband and Wife Unincorporated Businesses A business owned and operated by the spouses through a limited liability company does not qualify for the election Only businesses that are owned and operated by spouses as co-owners (and not in the name of a state law entity) qualify for the election.

Many investors do end up getting their own license because of this, others don't want the liability and extra work.

I believe the standard vehicle liability is $300,000 while the average settlement is less than $60,000.

For example, with a sub to the seller still a liability for the mortgage note, but does not have the real property as an offsetting asset.  

His agreements to produce websites, venture plans, private placement memorandums, white papers and coaching give him zero liability or responsibility to honor his commitments.

Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

Just to add to what has been said here - if the seller described this as a triplex on the sale documents, they might have a legal liability.