You need to talk to a litigation attorney to see what your possible exposure could be in this based on the questions I asked above.

As a civil engineer by day, the biggest "issues" that I could see you running into with this is the development process.

I do not worry about litigation, but I don't think anyone ever expects to be sued.As I mentioned, 2 are through a mortgage, and I have confirmed with both banks that they mortgages are transferable to an LLC. 

Nope, civil matter. anyway, I left the water off because I didn't know what this jerk would do.

He further stated that the theory behind the series LLC model is sound, it had yet to be proven in court, i.e. though punitive litigation.

When you do not have a lot of houses, litigation risk is relatively small and a good rental insurance policy + umbrella policy (e.g., $1M+) should suffice.

I would consider talking to an attorney about a civil suit for damages... especially if this impacts the sell.As your agents, their primary responsibility is to take measures to ensure the profitable performance of your investment properties.

WA Attorney General: Racist for landlords not to rent to felonsA recent court filing indicates that the Washington State Attorney General’s Office believes that denying a prospective tenant with a felony conviction is racially discriminatory.A member of the Attorney General’s Civil Rights Unit served a Consent Decree on Dobler Management Company, a property management firm in Tacoma, after conducting a simulated test on whether the landlord was illegally discriminating against potential tenants.According to the briefing sent to KTTH’s Todd Herman, in May, the state asked a tester to follow up on a rental property advertisement on Craigslist, which said the apartment complex would automatically deny renters with a felony record.

Roommate life is hard even when married and splits happen its a mess...Keep it civil don't make big enough issue he'd file restraining order on you or domestic abuse complaint.. 

Schober failing to pay the first mortgage,” according to the order.K-Sue Park, an attorney with Texas RioGrande Legal Aid, said the cease and desist orders were issued by the Texas Department of Savings and Mortgage Lending after learning that of more than 100 properties that the Schobers sold to homebuyers with mortgages under other people’s name, 85 percent to 90 percent were lost to foreclosure last year.Last week, Park filed two civil lawsuits on behalf of the families.The Schobers could not be reached for comment.David Pineira said he purchased a home from the Schobers in July 2010, but he lost it last year after the Schobers stopped paying the mortgage.Pineira said at the time he was 22 years old and did not have any credit history.