If they pass the personal smell test, I go to step 2.2.

While all the posts have at lease some legitimate points, I personally believe camp 1 is missing the opportunities present to protect assets under US law mostly because they don’t either understand asset protection, or don’t want to bother with it, so rather than do a proper evaluation they dismiss it as something that won’t work to justify their unwillingness to entertain the idea.Camp 2 is deluding themselves - which delusion has been enhanced by charlatans writing books, giving seminars, and selling packaged plans all of which either attempt to hide your assets or hide the ownership of your assets.  

Another way is to switch your product from 30 year fixed to a 5/1 ARM so now you're taking program or financial risk to arrive at a lower rate such that you can pass this FHA SS rule (5/1 ARM FHA has a lower rate by up to .50% than the 30 year product typically).

Too many people want a triplex and quadplex that they let great duplexes pass them by. 3-4 unit properties are hard to come by and you could be waiting a while for a solid one (plus competition might be really high) 4.

Most years a few new laws are being passed.  

I think you are right and I will run it passed an accountant.

Your parents and you could probably use a really good Elder law atty in NY as well to look at how best to structure their ownership and passing to you.Nothing wrong with selling to a related party and completing a 1031 exchange. 

If the evidence does not pass all of those hurdles, we have a form letter that they have not provided sufficient proof of an ESA. 

It sparked my love of real estate and now I’m ready to connect with like-minded people to create a legacy that I can pass down.

It's also a great way to pass buildings down to your kids who want nothing to do with the active management business.