Would love to hear from other pros.For California investors with out-of-state properties, common asset protection strategies include using separate LLCs per property for liability isolation, though this incurs California's $800 franchise fee per LLC and administrative overhead. 

Lets connect and discuss the scenario in full 

My class C rentals this is a common scenario and I have this situation frequently.

The answer will depend on how you and your partner acquired the property.Did you acquire the property as tenants in common or through an entity?

The scenario of them bailing didn't even occur to me. 

Hence if I were in your scenario, I would be targeting properties in the Texas market, preferably at least an hour or so away.

Is this common to see?

The most common scenario around here is to buy SFR, knock it down, and build a multi-family. 

This is probably the most common reason to arbitrage.

This is a great website, the only thing that everyone have in common is that everyone invests in real estate.