. - Clearly define the terms of the partnership to avoid misunderstandings. - For Both Parties: - Use legal agreements to outline roles, responsibilities, and profit-sharing. - Communicate openly and regularly to build trust.

4.Tips to avoid similar issues in the future?

So how do I avoid talking about airbnb.   

I would love to talk with a lender to get a better handle on the products that help investors BUT in my strategy, I am leaning toward NOT using hard money at first(if I can avoid it).

Quote from @Ashish Acharya: @Sanjai Dayal If your LLC owns the commercial building and leases space to your medical practice LLC, it’s essential to charge rent at fair market value (FMV) to avoid IRS scrutiny.

So $4,500 of additional costs to have a partnership only to avoid hypothetical risks would exceed the profits from many SFH. 

Typically starting with a smaller rehab budget of $50K or less (maybe a max of $75K) and avoiding a 1 to 1(or higher) ratio of purchase to rehab costs is recommend when you are first starting out. 

You can then sell it or keep living in it at that point at a new capital basis (you’ve locked in prior cap gains avoidance), but keep the old property tax basis.

However, they require consistent maintenance to avoid becoming a liability.

Any tips on areas to avoid and/or target?