In my opinion, the benefit of government-subsidized financing through Fannie or Freddie outweighs the liability protection and other benefits provided by the LLC;2.You have little or no assets, income or expectation of future income (in other words, you are judgment-proof); or3.You don’t have the discipline and/or intelligence to keep the LLC separate from your personal business.

IMO the advantages greatly outweigh the disadvantage.

Another way to look at it is: does the property tax savings and better mortgage rate outweigh depreciation and repair right offs, etc.....Am i wanting my cake and to eat it too?

Does the lost cost outweigh your need for the help that you desire.2.

Reporting is incredibly important, the benefit of saving a menial amount of money does not out weigh the cost of a head ache at the end of the year.  

I am fine with investing some of my time even if it were to be a dead end, as I believe the positives could significantly out weigh the negatives.

Hi Tom,Yes but if that goes bad the value of the potential friendship lost could outweigh the monetary benefit.At the end of the day money is just money but relationships and memories is worth more.That's just the way I see it but respect everyone's take on it.

But as I take it that is not one of your current likely options, for what it is worth I would analyze this problem along the following lines: (1) list out all the steps the government people are suggesting you need to go through to get this done, (2) evaluate each step for cost, likelihood of success, etc. (3) obtain as much information as you can about each step including estimates from professionals where possible, (4) evaluate the entire process for cost and chance of success based on your limited information, (5) compare the cost evaluation you have determined, with the potential gains to be realized from your development (6) determine whether the risks/costs outweigh the benefits (with your limited information, including a conservative fudge factor in the numbers).

PM tenant procurement fees and turnkey costs will far outweigh the alternative.

But the pros vastly outweigh the cons.