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

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.

LLC's main benefit is from a legal perspective.

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

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? 

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.

It is right on the fringe of being legal/illegal, and lawmakers have been talking about how to regulate it for years because it can be a dangerous process that leaves end Buyers feeling like they weren't represented.....especially when they see the closing statement and find out how much the wholesaler made just by getting to the Seller first. 

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?

I remember once I was in a nice area of ATL at a closing and the attornies office was hot I asked whats up he said his two condenser got stolen that night LOL.. its a very active sport out East of the rockies we just dont hear of this on the west coast..

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