Nevada courts are also more cautious in piercing the corporate veil, although this benefit might not accrue to you if you get sued in California for liability arising from your CA rental property.

Figured I'd add it to this knowledge-base...How to Sign on Behalf of a Limited Liability Company

Excess amounts received from a sale are a contingent liability as well as a cash asset until any statutory waiting period expires, form a borrower to bring claims, it's a hold your breath, they might not inquire about what we got, then, wheeew, now it's all ours without any problems.

Could there be some potential liability that I'm missing?

If done correctly (with windows, nice stone finish material, etc), it could be an architectural asset as well.With some proper professional landscaping (maybe also cut out a planter along the side of house), and addressing the driveway issues, that should eliminate the aesthetic liabilities and give you an amazing amount of curb appeal.There are other possibilities for completely redesigning the approach to the entry (straight off the front with a right-angle landing and a gabled portico), but would involve a lot more demo-ing, building, and expense.Similar to this:http://www.houzz.com/photos/17493/Becker-Architect...

You could have some liability there if they are un-licensed and you hire them more like an employee who you are supervising.If they bring the whole package to your interview and you feel good about them, you should have no worries about asking hard questions or scarring them off.If you have to worry about "not scaring" a contractor, you are either very scary (which I'm sure you are not) or the contractor might have a little problem.Good Luck!

,A few years ago we were buying a lot of REO with a lot of OPM.The way we did it was to setup limited liability partnerships with the money partners and buy in the name of the LLP.That won't work with hard money lenders but with private money, this could still be a possibility.

Break even is just one dip from being a negative liability for you. 

Just make sure that if you buy a condo that even though you get the "Master Insurance" that you also buy an individual HO-6 policy for your unit, and if you are worried up the liability coverage on it.

We view our time invested as part of the initial down payment (and property management as a continued investment in the maintenance of our initial capital investment).Purchase Price: $47,500Down Payment: $3,500Taxes: $775Insurance (Liability): $600Maintenance (significantly decreased after the initial capital investment) $1,000Mortgage: Seller will hold the note for 15 years at a 5.5% interest rateMonthly Mortgage Payments $375My two friends will put in $3791.66 and I will put in $3416.66 (I am a commercial sales agent.