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?

. You expose yourself to a lot of Unnecessary risk.

As it is, the current rent control laws sprinkled across CA create unnecessary challenges for new landlords.

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?

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.

It is completely unnecessary and a total waste of your money.

If that is your primary focus it could convolute thinking and force unnecessary errors, in an already error prone business with a very high failure rate.

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

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. 

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.