LLC's main benefit is from a legal perspective.

Tax and Legal ConsiderationsUnderstand the tax implications and legal responsibilities associated with rental income.

Your client should consult a real estate attorney to draft an agreement with the ex and ensure there are no legal or tax issues, especially since this is an investment property.

Consider balancing liability protection with administrative costs, and consult with a CPA to align your structure with your financial and legal goals.This post does not create a CPA-Client relationship.

Seek legal advice, however, what I understand is that there are really two way to wholesale that is legal in the state of Arkansas.

Alternative is the sherif evicts him and I pay tax and insurance.I know we can have a gentleman's agreement on these things, but im still afraid he might be able to legally sue me if we have a legitimate residential lease?

You can't legally deny a true service animal.

Because I'm not an accountant or versed in tax code and law wouldn't I want a CPA to ensure everything is legally tight and as advantageous as it can be? 

If the purchase is done in cash, as you mentioned, they’d have more flexibility, but they’ll still want to carefully consider the tax and legal implications of the subsequent sales.I hope this helps, and good luck with your client’s deal!

If you need financial help, ask under the "Finance, Tax, and Legal" forum.