There are also some other strategies that might not be as bullet proof but cost $.You should definitely consult an attorney to see what the best strategy is based on your wealth profile, risk exposure, risk tolerance and budget.You may want to double think about creating an LLC in NV and WY if your property is not located there.

In theory, this is good advice but great advice must also match a person's personality and risk tolerance.

If not, it will come down to how savvy the tenants are and/or how much imprecision they are willing to tolerate when being asked to pay their monthly utility portion.There's not an easy perfect solution.Junk: yes, write it into the lease that junk is not tolerated.

We get what we tolerate.

That said....it's just me (no wife, kids, etc) so my risk tolerance is pretty steep right now.  

While the terms of the deal make the tolerances on what I would typically look for a little looser, I still want to make sure it's a smart decision that will cashflow well.I am having a hard time getting good numbers on what to project for annual revenue there. 

We either love each other enough to tolerate differences or not.

There also needs to be a conversation about the investor’s level of risk tolerance in the likelihood of a lawsuit; what insurance and umbrella insurance covers and does not cover,etc.

There is room for all... depends on your risk tolerance and of course pocketbook.Contact me if you want to discuss further.

For example, I would walk away if you don't:Have a clear understanding of what the total repair would cost.Have the tolerance for risk or ambiguity.Have the cash to do the repairs while maintaining general cash reserves.If these are true, walking away may be a better option than getting a $15K reduction on a $10K repair.