It's California Civil Code Section 1962. http://law.onecle.com/california/civil/1962.htmlYour tenants must be provided an address for service of process, should the situation arise.

Certainly, the landlord can leave the carpets in the premises for as long as he/she likes, however should a situation arise where, say, in the twelfth year those carpets are absolutely destroyed by the tenant.

There are untested waters with states allowing exemptions, as HUD will only provide determinations on a cases by case basis on an arising issue.

There is a legal, binding, very clear document that spells out everything should a dispute arise.

Chapter Two describes these relationships, which include (but may not be limited to) the following: spousesparentschildrensiblingsstepchildrenaunts-unclesnieces-nephews...and, according to Chapter Two of HUD 4155.1, unrelated individuals who can document evidence of a longstanding, substantial family-type relationship not arising out of the loan transaction.https://www.fha.com/fha_article?

In addition to making sure that you form the entity properly, the lawyer’s job is to raise issues that may arise in the future between you and your business partners that, had you anticipated them up front, you would have agreed on.

The Property management company said they have a list of contractors/maintenance/repair men that they could send out as problems arise.

It is likely advisable to have a written agreement that addresses all sorts of possible issues that could arise in this situation including with regard to the loan and any mortgage interest deductions, splitting of expenses, splitting of profits, tax reporting, what is to happen in the event of disagreement, any rules about rehabbing such as particular types of materials to be used or types of projects (can he choose the cheapest and ugliest materials, consider that has having rehabbed it, and then takes a split of the profits still at 50%?)

Time is the thing that’s most valuable to a developer.Also use a shell LLC to tie up property in case any issues arise that result in litigation.

For example, when I'm buying rentals, I aim to put down between 3-10k per deal between points/closing costs/cash on hand in case unexpected expenses arise but I'm using the BRRRR strategy and using hard money!