YUP  the first remains in first.. the wrap is junior to the first.. its does add a level of complication though if the first position lender needs to do a Deed In Lu ..

It's not going to force anything, but you can let them know "hey I'm sorry you're having a rough time, I'm willing to work with you on this but I need you to work with me as well".Check with your attorney for the deposit, in FL the deposit has to be made out to all occupants on the lease, so that could cause complications.

In fact it may actually complicate litigation in the event a claim were to arise while adding additional insurance expenses to your real estate operation.To explain why this is the case I’m going to ask one very simple question: In the event a tenant dispute, premises liability, or any other claim were to arise, what prevents the Plaintiff’s attorney from merely listing your wife who it seems is the property deed holder in your fact pattern as a Defendant?

I have no idea why (never had a single fraud issue), but after spending several hours going down the rabbithole of figuring why this happened, we just want a solution.Some of the other banks we are with seem to make it overly complicated to have more than a single account.Any recos?

They seem complicated, lock up your money and have a lot of restrictions. 

I am definitely the one doing the work on the LLC as well as the tax complications being lower with a single member versus the spousal partnership.

Albeit, when we building materials started to increase significantly, that complicated things and we had to just keep going.You will lose MORE if you sell a half-built property, than if you take it to completion. 

Unfortunately, this is far more complicated than "you can defer depreciation recapture with a 1031."

The tenants of whom you will be looking often can't buy their own home right now, otherwise, they wouldn't be utilizing this agreement, which typically is more complicated and costs them more.

Hey @Tony Thomas, I won't speak to the tax side (not a tax pro) but from a bookkeeping perspective, this will complicate your operations (and, bookkeeping as a result) quite a bit.So, ensure you have super powerful incentives from an REI-savvy attorney and an REI-savvy tax advisor prior to making this move.Some of our Clients have implemented this in the past (prior to working with us) and their businesses weren't large enough to justify the complications that come with this type of structure.Hope that helps!