Finds (1) half of what plaintiffs told him is incorrect or untrue; the potential defendant has filed all the correct paperwork for Reg D and hence has “statutory” protection against almost all but fraud; unlike what the plaintiffs believe and told the attorney the risks WERE disclosed to them, NO specific return was promised them; and the defendants have not stopped communications; they merely grew tired of the 82 daily phone calls asking, accusing, and raging by the same three plaintiffs.  

They have the correct lease agreement and disclosures and make it much easier.

The only correct advice is, "Go talk to a professional."

.• Use some equity from the sale to make this transition smoother.I’m torn between maintaining our current home as an asset and buying  a new smaller house to use as a rental after we move back in versus simplifying and focusing on a single upgraded property Considering factors like market trends, potential equity growth, and quality of life, which path do you think would be most beneficial?

If it’s in an LLCs name it s protected if maintained correctly.  

True although the fires this year just adds to the reasons to leave California (excessive taxation and regulation, overbearing political correctness, downtowns littered with feces, etc.).

This is correct.

This is primarily what makes their work product substantially lacking in correct English grammar, legal protections, timely professionalism and many other ways any Securities Attorney will point out to investors.

Forget whether any of this is correct. 

Most likely your conclusion is correct, but the only way to confirm it is by having a real estate accountant review your tax situation.Also, please read this introduction if you want to better understand the concept:https://www.biggerpockets.com/forums/51/topics/1075919-five-...