I would assume that with the owner having legal title, that if they were to file for bankruptcy, get sued, etc that the property would very much be up for grabs as it is an asset capable of being liquidated.

Do you allow bankruptcies and foreclosures?

Downside: Much higher risk (bankruptcy if too many homes went vacant simultaneously), and a longer wait to reaching truly passive income with nearly a dozen mortgage free homes.For perspective, I'm a military guy with very reliable income.

I guess you didn't have 80% of your investment friends go through bankruptcy or foreclosure in 2008-10?

I don't know what courts look like in TX, but in the Los Angeles area of CA, a tenant can in reality draw out the eviction process to as long as 8 months easily by various tactics (incorrectly filling out forms, using different addresses, initiating bankruptcy, lying, and so on).

If you don't You WILL get left behind.I know this is not exactly the solution you wanted to hear but if you don't step up you will really risk bankruptcy!

@Tim NethersTypically in these situations you create an LLC that the two of you are members inReason why is if one of the LLc’s gets into legal troubles elsewhere it could potentially attach to this property or if one files bankruptcy etcConsult an attorney for best way to approach this

Then there are the suburbs that draw families with placid neighborhoods and high-achieving public schools.But the state capital is teetering on the brink of bankruptcy, and the turbulence rocking Hartford has served as a stark reminder of the gulf between the affluent enclaves that drive Connecticut’s wealth and its larger cities that have long grappled with high crime, underperforming schools and unsure financial footing.The problems in Hartford are similar to some other cities across the United States that have sought relief through bankruptcy: its tax base and population have shrunk and its pension obligations and debts have piled up.

If that's already been negotiated, then wanting for five years or so (you imply you're just now doing a bankruptcy) for you to buy will throw away the negotiations that have already been done.Houses are nothing but piles of bricks and boards.

Even in bankruptcy I have never heard of a creditor attempting to acquire an interest in a property that was highly leveraged (loaned up) to acquire an undivided one half interest in a property, that they would have to sue, for the partition of the property, to force sale and then only be entitled to one half the remaining equity.