This hit us hard but we do not want to have to deal with legal fees and more time if we had to file a larger amount, higher a lawyer, file with a different court vs Small Claims.So part of the reason why the difference is so large is because 1) we were hoping we could have a contractor come and just sand, fill, and refinish the areas that were damaged but due to the floors being engineered wood and also having a certain character to them, we can't have them sanded or you would be able to see exactly the areas that were sanded. 

We're going through the same process right now and are inclined to create one LLC per property with a Corp as controlling entity.Even though some states do not require you to register the entity on that state (in Ohio is preferably but not mandatory for example), if you would to have any legal issues, you would need to be registered to conduct business in that state.

If someone has been taking care of it and try to claim it you will have to deal with the legal process of redemption or try to foreclose on it (this all depends on NY state law regarding tax liens)

Secondly, when the legal owner dies, who then takes title?

Account ClosedGenerally yes but it depends if there are other investors in the same fund or not, and some member/ownership percentage restrictions could come into play.

I can't tell you how many non-legal leases I've seen over the years. 

@Carlos PenaYes, either buyer or seller can "change mind" after signing contract.However, contracts are legally binding so there are consequences if both parties don't agree to the change, usually financial penalties.Check with your local real estate attorney to know what the consequences are with your particular contract and whether it is worth your time and expense to enforce the contract as signed.

@Alan FaitelFor legal advice, you'll need an attorney.

So you're de facto realtor practicing real estate without license......do you think it's perfectly legal?

Do not rely on it for legal advice.