A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

Is it for liability protection?

And what kind of protection are you referring to?

But if the lease terms are murky, if renewal conditions aren’t guarenteed, or if the airport authority could dramatically shift the deal down the line, then you should be asking for a discount..or at least some protective clauses in the contract.I’m curious... if you were to step into this kind of leasehold now, how do you think you’d explain the upside to your future buyers or partners when you eventually decide to exit?

Good insurance, particularly with an umbrella liability policy provides very adequate protection on smaller assets. 

It will protect you for cheaper without the additional complexity.

But any improvements are at your risk.. the redeeming party just owes you your cash plus in our state 9% and any VERIFIABLE expenses you paid to protect the asset.

If you’d been holding around $620K from a 2019 sale and directed it toward a few properties like that.. especially if you leveraged financing.. you might’ve grown your portfolio’s total value well beyond what many Los Angeles holdings would have delivered over the same period.Then again, L.A. still has that unique mix of robust demand and limited supply.. from what I’ve heard, you can see impressive long-term gains there if you’re comfortble navigating tenant protections.

If you think of your $80K like a game of chess, your money is your king—it’s valuable and needs to be protected.

So you could form a partnership but it would not be allowed to purchase the property, so you will not be fully protected legallyThanks for clarifying that they're not a first time buyer program, I am not sure why I had that confused.