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

Provide clear instructions on where and how to pay to avoid confusion.Recover Security Deposits: The current property manager is legally obligated to transfer tenant security deposits to you or the new management company.

One common approach is to form a legal entity, such as an LLC, where both of you are equal partners.

Owner ended up settling with the tenant, but then we had to threaten to sue our own client to get them to pay our legal fees.- Owner must sign a Hold Harmless to indemnify us against any potential tenant lawsuits relating to the work their contractor is doing.--- Another lawsuit resulted from owner's contractor taking down basement handrail to get supplies down the steps, then they didn't put it back and tenant fell down the stairs.- We also negotiate a reasonable completion date, depending on the Scope Of Work (SOW). --- Who gets all the phone calls and wastes time calming a tenant down because the owner's contractor doesn't show up as scheduled after they took time off from work or a 3 day job takes 3 weeks?

And agents are legally prohibited to engage after closing - at least per Wisconsin State law. 

This is for basic informational purposes I am not an attorney and this is not legal advice.First, if you offer to purchase a property using a HELOC to fund the purchase you cannot later back out of the agreement because you couldn't find PML or investors.  

In case someone has been successful please share the methodology that is legally approved.thanks,Ananth

Perhaps if your partner was a general contractor or handyman type there may be some merit there to reduce costs / increase profitability.If your partner enjoys deal sourcing, a better move might be for him to become an agent - so he could legally collect commissions from finding deals and managing properties for multiple people. 

Landlord friendly laws keep you safe(ish) from legal disputes with tenants and there are pockets in both markets that are appreciating at solid or better rates.

I think there is value in ADU as long as it is legally done and can be legally rented.On the sale side a benefit can always be an in law suite.