You do not need an LLC or land trsut to do so, but it does help conceal the sale and thus the due on sales clause.Their is no additional risk to the seller (and much much less than a sub to) and no risk to you (at least not in excess from the mortgage an risks involve in any investment)

They are already loosing money on it, why would they risk putting more money into it?

There is also an excessive amount of selling that goes on at his events.

Jeffrey, Operating expenses include taxes, insurance, management (even if you do it yourself), maintenance, advertising, office supplies, legal fees, evictions, damage done by tenants in excess of the security deposit, entity maintenance, utilities (if only during vacancies), vacancies, capital expenses (not technically an operating expense), etc, etc, etc.

State laws can be very specific in this area, as they are in PA.According to our Landlord and Tenant Act of 1951, "No landlord may require a sum in excess of two months' rent to be deposited in escrow..."

Also for the maintenance and management fees look to loose one of the units rental income since that is usually part of the pay the maintenance/manager gets.Your analysis does look to be pretty good.

I'm not sure how you posted by accident 6 times, but I'll be sure to remove all the excess posts.THANK YOU FOR NOTIFYING US!!!!

I mean, if it all melts down and I loose my job or can't pay my mortgage, it looks like I can pass the buck on to someone else in this new, no accountability financial system.

I have watched friends that were in great financial situations loose their jobs because businesses where doing the same as your common consumer and are now either facing foreclosure or have already been foreclosed upon.

I believe your client should be fine with their deposits in excess of $100,000.