In my network I've reached out to a RE friend of mine and she has a investor end buyer that is interested in my deal which consists of 3 properties as a package deal from the seller i.e the seller does not want to sell just 1 of the properties it must be all 3 of them which are cash flowing rentals.My question is my RE friend has to legally transact the deal on a "CAR" purchase agreement.

They are effectively like any other syndication (by definition they are a syndication), but put in place a legal ownership structure to accommodate 1031 proceeds.I understand why they have higher fees than the typical syndication, given the complexity in their ownership structure compared to a "typical" syndication.At the end of the day, any return from a syndication (typical or DST) is going to be primarily driven by market cycles.  

Here’s a simplified breakdown:Lease Agreement: Since your buddy signed a 12-month lease in July '24, he is legally protected until the end of the lease term unless the lease has specific clauses allowing early termination under certain conditions.No New Lease Signed: Since no new lease was signed for the new home and no formal agreement was made, the original lease terms for the townhouse still apply.Landlord’s Request: If the landlord wants to break the lease or has changed their mind about the swap, they would typically need a valid reason, like a breach of lease terms, or might need to negotiate an agreement with your buddy (buy out)Legal Advice: Your buddy might consider consulting a local attorney or legal aid service for advice on his specific situation.

Make sure to open a separate business account for the LLC to avoid co-mingling personal and rental funds.Unless legally required, avoid getting MMLLC as it requires you to file a separate tax return.

Legal status of titleHere’s the personal information you’ll need to determine1.

Questions: 1) Is this a good structure OR should I keep Operations LLC (Y) separate from Parent Holding LLC (X) and not under it to avoid any legal complications ?

Why not look at a duplex or place with a legal suite and you can live in one unit and rent the rest of the house? 

What is the legal way to separate out one lot, and sell it for $1M? 

How do you decide on the number of tenants able to fit in one property as I know its more complex than purely bedrooms, not speaking about legality's though.

If you’re asking how two immature individuals can handle their differences without legal costs then the answer is that they both have to give up the scorched earth policies.