As for the legalities of setting up an LLC to protect you and your partners, I would consult with an attorney for best judgement. 

I'd also like to invite you to join THE MTR Connect, a group I host that meets virtually every Friday from noon - 1:30pm EST.

Quote from @Cheryl Abram: What legal filed docs are LPs entitled to see to help validate a deal's failure?

Hey Santosh,As of right now you're extremely exposed regarding insurance and I'm going to assume legally as well.If the home isn't registered as a legal multi-family with the town that's something you'll have to correct ASAP and make sure the home is up to code.Insurance wise as soon as they find out what you're doing they'll cancel you as the risk has changed from a single family owner occupied home to a multi family owner occupied home.

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

You can legally change or cancel a contract if all parties agree. 

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

Speaking of iteration, allow me to share with you the iterations and processes we go through in our Multi-unit Acquisition Program: After a client gets pre-approved for financing, we go through multiple deals to find the best ones that meet our metrics.

This is not tax or legal advice, just what I personally do, consult your professionals! 

Hey everybody, I've been listening to BP podcasts for a couple years now, and I'm excited to finally get in here and start accelerating my learning and meet some like-minded people.