It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.

You are a brave soul.I would (I did) sell and run....

Milwaukee has been very competitive, anything decent sells with multiple offers, the houses are old and OOS investors often don't understand how delapitated the place is they just bought.

This way the seller cannot sell the property you contracted to buy & then assigned it to an end buyer.

However, it is also a well done setup to funnel for selling his guru trainings.

We discussed selling or doing a 1031, but the commission would be about $50k, and we don't want to lose that now. 

When I'm selling as a FSBO, I usually use 6% as my seller's fees number - 5% split between 2 agents and 1% escrow/title fees.

Needless to say the relationship didn’t work so I had decided to sell the property but came to find out when someone wanted to buy it there was another persons name on the title that dated back to  when my father purchased it.

Financial suicide......The only people that should try and own and operate D class units are local and VERY experienced in that genre... they know all the eviction attorneys, law enforcement, social services and local "muscle" to handle the class of people and properties you will deal withNew and out of state?

I did explain to them their options they had (such as sell it on the market, keep it and file BK, get a loan mod, and credit counselors out there who could potentially assist).