Two - you are looking for more cash flow.Reputations are earned over time and have to be constantly fought for.  

For example, if you each put in 50k, then each took out 25k to put it into LLC #2, this wouldn't be taxable (I'm assuming your basis is just what you've put in, and that you haven't earned revenue or incurred expenses yet... things like this will impact your basis).You would just record it as a shareholder distribution in LLC #1, which would decrease your basis in LLC #1, then a shareholder contribution in LLC #2. 

The tax valuation of the house was $580,000 in 2016 so the owner is very aware that there is extra equity in the house, it was a rental but they don't want to deal with it anymore.Now as for my situation and numbers:1.

There was no way I was getting anything out of them and didn't want to spend the extra money taking them to court.Hopefully you can recover some of the money, or at least have the comfort of knowing it's on their record for future rental applications that require background/credit checks.

I also plan to have extra maintenance costs.

I have a client with 10 homes and his umbrella is 5million in extra General Liability for all of them is around $1500 annually.

It just adds extra expense and lowers your credit rating.B. 

As your primary residence, you should purchase the best house you can afford with your kids education and extra curricular activities in mind.Problem with SF public schools is the lottery system, but that's a whole other discussion.

I came away with a chunk of change, the respect of family and their potential business, and a couple extra grey hairs.The highlights of this experience?

I always try to pay for what’s in front of me and try to not speculate on rent increase etc. if I do manage to increase rents or pass expenses off to the tenants than that extra money is gravy.