I know that John may never be able to buy a home and may always be one accident away from bankruptcy.The reality of our current position in the economic cycle is that home prices are high and mortgage rates are high enough to ensure someone like John may never qualify for the loan.

Meanwhile one of you gets in a car accident and you both lose all the co-owned properties if they’re in an LLC or not. 

Any illness or accident or job loss can make the whole thing blow up and you don't mention a working spouse to assist is the event that things do blow up.

To be quite clear I see this person as more of a predator than friend and I am highly skeptical that this was an accident. 

one thing to note is that cash flowing net positive each month on a house hack was never the point, it was just a happy accident for a few years when rates were low. so, if you could rent something for $1500, or buy something to house hack and still owe $1122.57 toward the mortgage, house hack.

Everyone on this chain should read it.One thought has been circulating is that the timing of the attack is not an accident.

For instance, if a partner let's his kid drive his car and the kid gets into an accident and seriously injures someone, both partners can be sued.

I don't believe this was all by accident. 

as in - we won't get diabetes or won't get into an accident?

Once in the building (20 units, I believe) they just went from apartment to apartment through the common walls.Anyway, that was one horrific experience!