(Case and point the BOI you’re referring to) I’m convinced of this because there’s clear exemptions in place to shield yourself or at minimum hedge against BOI liability.

But, an LLC will not limit you from liability in total.

Legally, the GPs take on the liability of the project including things like signing on and qualifying for loans.

At that point it would certainly be a liability.

The depreciation, repairs, and mortgage interest from the property renting will surely create a paper loss and help our somewhat high salary’s tax liability which is great.With the same thought, selling would do the exact opposite but would leave me with a chunk of change in my pocket.

You can settle privately with your partner based on your agreed ownership split, but you will handle the entire tax liability.

This month we're going to have a panel of house hackers discussing all the ins and outs of turning your home from a liability into an asset! 

When financing a large-scale fix-and-flip project, assessing and managing risk is crucial for success.Risk Management StrategiesContingency Budgeting:Set aside a contingency fund (typically 10-20% of renovation costs) for unexpected expenses.Time Management:Develop a detailed project timeline to keep renovations on track and avoid extended holding costs.Partnerships:Collaborate with experienced contractors and real estate agents to mitigate risks associated with repairs and market positioning.Insurance:Obtain comprehensive insurance coverage, including builder’s risk insurance and general liability insurance, to protect against unforeseen events.Exit Strategy:Always have an exit strategy.

I know that the property needs to be under an LLC for liability, tax, etc.

I know often times people on this forum say they are unnecessary and don't always protect against liability and just get a good umbrella policy.