@Jon AcostaOn a free and clear house, no work, great condition, great location, offer an installment sale, for a buy and hold property for yourself.Get the payment to owner low enough below market rent for a great cashflow to support PITI and maintenance and vacancy; purchase price can be $125,000.payments to seller (market rent - 350) or better.Installment sales have imputed interest (See Applicable Federal Rates IRS)I would offer cash or terms, cash is .70 x arv - repairs.Owning private mortgage paper is better than owning property: no toilets, tenants, or law suits.

appreciate the feedback--while I believe in second chances, the fact that he ignored the caveat on our ad of "don't respond if you cannot pass a background check", indicated to us that he was ok in being deceptive--even if it was to prove himself as a good worker so we would overlook the criminal aspect--I feel that having him around  increases our liability for a lawsuit, and if something Actually DID happen, we had knowledge & put our tenants and their security at risk---PS--asked our attorney & he said get rid of him, so that is the plan--

What's the lawsuit about?  

You can even buy expected judgments from law suits!

And as my dear mother would say, "It takes one to know one"So what do you mean by going "unprotected" If you think forming a LLC or a 'C' Corp is going to save you from lawsuits, then think again.

He also said that he had filed a lawsuit to the lender because he had a hearing on June 24.

Earlier this year, I successfully defended a lawsuit from a plaintiff's attorney who sued my client and attempted to pierce the LLC's corporate veil in order to hold its own personally liable.

I’m probably should be prepared for a lawsuit.

However, using the LLC's funds as your own and not keeping adequate books and records is a recipe for allowing someone to "pierce the corporate vail" and attach your personal assets in a lawsuit.  

This can help protect you against frivolous lawsuits that are prevalent is CA.