Going bankrupt, I got a roommate to keep myself afloat.

Was bankrupt due to his guarantying his son's debt, about $100,000 which he cannot pay on his doorman salary.2.

With the LLC, the worst that would happen is you bankrupt that LLC and lose the property. 

@Gareth FisherMost people go bankrupt not because they have more liabilities than assets, but rather because they have more expenses than income.

However, if the borrowing had been easier, I very likely would be bankrupt again by now.In short, having bad credit in the beginning protected me from myself, that's the bottom line.  

So if the banks want to do a massive wealth transfer à la the Great Depression, they can call in all of their 'expired' balloon loans, bankrupt half the country and take possession of half the country's real estate?

I would have been completely bankrupted if I continued with them. 

If you give him a split, you have to figure out what happens if he doesn't do a good job, or of you have to fire him, or if he walks off the job, or if he gets hit by a bus, or if he goes bankrupt and is unable to pay his subs, or if you are unable to sell the house and have to hold it is a rental, or if there are no profits, or any other perfectly reasonable situation where things get very difficult and confusing.For these reasons, I would never ever ever partner with a contractor...

We also knew this same GC had gone bankrupt in the last business he had.

What I have heard happens sometimes, and again I haven't experienced this, is that after a buyer is found the developer/builder goes bankrupt and therefore your rent is no longer guaranteed.