I view it as a bit of a retainer as well as she is local, speaks Spanish, and knows "everybody" and can straighten out small issues when they pop up, and can pay the local electric bill etc. 

@Jay HinrichsIn your opinion is it better to have a lesser return with $0 cash in a deal and bring on maybe 1 or 2 investors and get an intimate return on cash or retain 100% of a deal and getting a 19% cash on cash return?

I'm guessing he'll drop it once he keeps being told to pay a $5k retainer for the lawyer to do anything.Unless there is something you are not telling us, it's just going to be an annoyance.  

Why would my tenants retain a lawyer?

-The financial transaction is known as a, “Contract for Deed” transaction, wherein the Vendors retain the deed title until the property is fully paid by the Vendee.

I'm not attempting to give accounting advice but I think it's important for people to carefully consider the nuances of the OZ regs that don't exist in the 'normal' real estate world.The Final Regulations retain the rule included in the Proposed Regulations limiting the ability of a partner to receive debt-financed distributions while maintaining its qualifying interest in a QOF by applying modified disguised sales rules to debt-financed distributions from a partnership QOF.

One good thing about deeding them the property though is if there is a homeowner exemption in that state they can get the property tax's lowered a bunch.Ideally My end  goal is to remove any and all liability from the property ,the ancillary expenses and the city especially with ever increasing taxes and code nazis and yet still retain the monthly cashflow equal to rent  .. mailbox money essentially without the phone calls the drama  and city on my butt !  

The scenario involves a couple who have decided to sell their property to leverage the advantage of the capital gains tax due to their residency for over 2 years within the past 5 years( purchased property in 2014 , convert it to rental in 2021 and rent it for 23 months) , alongside fulfillment of all other eligibility criteria outlined in IRS Publication 523.Given this context, if the couple transfers the property deed to a LLC company, with the husband owning 51% and a third party retaining the remaining 49%, would this transaction still be excluded from capital gains tax?

Governments hold and retain control of the population with fiat dollars.

Common fees will include a set-up fee, leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more.