Closing costs both ends, commissions, financing/carrying costs, etc.

So if I put a group together they are just members and they don't PG anything its up to me to have the financials to carry the project. 

As it was he finished the building with contractors that did not even carry liability insurance and to top it off some were his very own relatives.

Do you have the cash if it is empty, also know as carrying cost?

@Tom Vesel have you spoken to the family about a short term owner carry?

Beware: this tendency carries the very real danger that we may come to believe we are living in a world that is very different than it actually is.

Between the annual reports and filing fees, and also the overhead necessary to maintain separation of assets so the corporate veil isn't pierced, the cost-benefit just might not be there.Might make the most financial sense (and most streamlined) to run her as a sole proprietor (Sch C) and carry appropriate and adequate insurance, which you should be doing anyway with an LLC. 

Most renters will not pay renter's insurance and that is a choice but how would they like not to have a choice about carrying insurance because of the potential liabilities and expense should you come up against someone like them ? 

If not, you'll need to carry the difference.  

There were several times where we felt like we were going to lose money on this property, but we carried on and were able to finish the house.