They gambled, and lost.

Q1: Great points, we'll need to have a detailed operating agreement that outlines an agreed approach to all potential outcomes.

Then the person is soured on gambling on real estate and not around here to answer questions. 

My goal on this platform is to expand my network and develop relationships with brokers, owners/operators, investors, and others who are looking to learn more about multifamily real estate!

Currently operating and cashflowing, listed for sale What made you interested in investing in this type of deal?

You didn't mention where you are operating, but depending on average home prices, I think you'll be ok.For instance if we're talkin $500k homes, and if you will get a 2.5% commission, split that 50/50 with your Broker, you will end up with $6,250 per sale, right?

While there could be avenues to acquire real estate creatively with less cash operating  real estate properly is capital intensive. 

According to the telephone operator it was snail mail only for Articles of Incorporation. 

Because it has to, it's operating on a razor slim margin and can't afford the issues. 

If you have an LLC operating in another state but you reside in CA they make you REGISTER that LLC as a foreign LLC doing business in California.