My question is does anyone know which would be the best solution to isolate the sue just to the house that my company is being sued?

Me personally, I’d check the contract and try to meet with both the architect and contractor to find a solution. 

First and foremost I have tried the typical solution of friends and family.

Between losing the Homestead deduction (+$700/yr in property tax) and a negative cash flow, I don't see a solution.

Or maybe they do now since the last time I used it.Overall, I think it’s an excellent solution for smaller portfolios because you can easily spot any discrepancies.

@Jake HughesCost segs can be an amazing tax deferral mechanism but they are not a one size fits all solution.  

@Nicholas Z.Did you find a solution? 

It doesn’t appear it was his intention to pay them back anytime soon.And in the example I gave about the overleveraged Subto that went bad, and the “Solution” was to sell to avoid a foreclosure on a Due on Sale, few if any of the Subto students can bring in $43,000 to closing, so it’s likely the property would go to foreclosure and the gator lender in 2nd position would lose most if not all of their money.

Never a one size fits all solution to an asset protection strategy.  

I think my partner and I may be exploring a complicated solution - glad to hear that it sounds like one exists!