Extreme weather conditions, or areas prone to flooding, high wind, tornados, heavy snow storms, high humidity, wildfires, and long stretches of freezing temps add up to more maintenance costs, unplanned repair expenses, more insurance claims and higher premiums, greater risk of injury, higher utility costs, snow removal, and more strain on mechanical equipment, roofs, siding, and so on.

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

The goal is never to end up there, as it will cost you 6-8 months of unpaid rent and an attorney fee to add insult to injury. 

Having an LLC, S-Corp or C-Corp provides isolation of personal assets from corporate liabilities.In other words, if I own a convenience store under Me, LLC and someone walks into my store, trips and hits their head on a shelf, resulting in severe brain injury, the resulting lawsuit can only collect up to the assets of the store.Let's say that the plaintiff was awarded $5M in damages. 

Ask a liability (personal injury) attorney.Much more effective and a lot safer, you can both have LLCs inside a "Joint Venture Agreement".

There would be certainly a worse outcome and a 100% chance you would be the subject of a personal injury lawsuit.And lest anyone think being a self-managing landlord is "easy money" - I present you Exhibit A.

It's a complicated calculation based on her indiviual facts but a CPA can figure it out for you if any capital gains will need to be paid.3rd Right now inflation is running at break neck speed and is likely to get worse.

Southern CA is escrow so it will be an escrow officer willing to stick their neck out for you if there is no transaction in progress. 

General Liability (for Bodily Injury & Property damage)3.

In any event, it's nothing that I have seen in my neck of the woods.