The tenant has two types of coverage: liability and personal property.

@Marc Zak Using an LLC for each property provides strong liability protection by isolating risks to individual assets, with income and expenses flowing through to your personal taxes on Schedule E.

I don't know, it sounds kind of weird but my friend is kind of freaking out about potential liability since the lien was literally placed on the house essentially hours before closing.This is being made all too complicated.  

Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

In one of our development projects, the City staff asked us to remove 40 units from our concept plan.This wasn’t requested by the City Commission at a formal hearing, it was the opinion of the staff.Our original conce...

A third consideration is that FHA has rules for limiting rentals in developments. 

Hello Adam, The way I draft our contracts in Pennsylvania I include a clause that requires the tenants to carry $10k in personal property and $100k in liability.

If I’m the buyer the seller must acknowledge, in writing that they understand I have no liability on the note and that they retain liability.  

@Roger Kim If your friend qualifies for the Section 121 exclusion, he can exclude up to $250K of capital gains, but gifting you the proceeds won’t legally avoid your tax liability.

One thing to note when getting conventional mortgages and spouses.There is a 10 limit per person for conventional financing.You can either do 10 conventional in each person's name which would be 20 mortgages for 2 people or if you do the mortgages jointly, will only allow 10 in total.My thoughts are not to own joint assets until you are both married.