If you go with the partnership route1) You need to manage the money going in and out of the business bank account.2) File a partnership return and be responsible for issuing K-1's3) make distributions to you and your partner for cash flow that you receiveYou will likely spend many hours on a nice gesture.I may want to consider instead to give a christmas gift or a bonus for early completion of projects.

Diversify if you can with smaller amounts so risk is distributed. 

In the past 10 years, Ocala has greatly improved the employment base, adding tons of logistics and distribution jobs on top of the medical, service and equestrian jobs that we have always had. 

The second DOS was in 2020 when I bought enough properties using "subject to" that I couldn't keep up with rehabbing and some sat for a couple of months.

However, I've NEVER had a note called on any properties and the vast majority were "subject too" and/or owner financing.

These included cash buys for flips, seller financing, and subject-to deals.

@Frankie Lotrec if you have an existing loan on the property and you plan to legally convert from a 4 unit to 5 unit , you should check the loan documents because you’d essentially be converting it to a commercial property, since 5+ units is considered commercial and subject to different appraisal approaches and so it would rule out the property being considered for purchasers utilizing residential financing.  

My thinking is very rarely at the subject level, usually at an "if then" level and this is what it conveyed to me. 

Use umbrella insurance as an additional safeguard, especially if you opt not to form an LLC.Avoid S-Corp taxation for rentals, as rental income is passive and not subject to self-employment tax.

Subject to tax liability on the gains of course, but it gives you more flexibility.