Your initial balance sheet should look something like thisAssetNote receivable - $10,000EquityDavid Hite - $10,000When you get the payments from the debtor - you will record a portion of the payment as payback of principal and a portion as interestCash - $100     Interest income - $10     Note Receivable - $90There can be an additional layer of complexity if you factor in the account "discount on note receivable" but the above is a good starting point.

I'm not an attorney but my understanding is yes, you can definitely do that, and I believe things like that happen every day.While I can see some possibilities for why someone would want to set things up that way, I do have the instinctual thought that it might be over complicating things.Technically the second LLC is another layer of asset protection, and maybe you have a very specific entity structure setup for taxes which would make it beneficial to do it that way (an LLC inside an LLC), but it's worth asking the question of whether these is much difference, or much more protection, than just having you (presumably a Mass. resident) be the member of the RI partnership LLC straight-out rather than having your MA LLC be the member.Also, depending on what else you have going on in your MA LLC it may be a disadvantage to have it be a member of the RI LLC from an asset protection perspective - if someone were to be able to pierce the veil of the RI LLC then everything in your MA LLC would be at risk.If you do go with the MA LLC as a member of the RI LLC, when you go to sell the property you'll have non-resident withholding - but you'd have that if you personally were the member of the RI LLC as well.You'll also need to be careful how you sign anything relating to the RI LLC - you'd have to be careful not to sign as member of the RI LLC but as member of your MA LLC, member of the RI LLC.

I would say get the drawings, it's an additional layer of protection against cost increases on the construction side.  

The new bid was for tear off and replacement with a quality, thick, EPDM, an insulation layer, and included four (4) sheets of sheathing (4'x8') per building.

The partnership owns a piece of an LLC, which itself owns the properties (or there maybe even more more layer between the partnership and the properties, I would have to check if it is material to this conversation). 

If it is a gated community, it also adds a layer of security for your tenants.

Of course many lawyers would tell you otherwise.Of course, one possible advantage (if this is important to you) is that an LLC provides a layer of obfuscation if for some reason you are looking to make it harder for someone to find out you are a landlord through public records. 

So there ends up being 3-5 layers of vinyl.

But once again, the VA allows the lender to add additional layers onto requirements. ...

Bleach kills only surface mold, forms a carbon layer and seals and protects the mold growth below.