Doing major rehab/conversion work to the house would not make the numbers work for this deal (if they did, I'd extend the second floor to fit a bathroom). 

Hello all, I am making my first home purchase (a bit of a fixer upper) and would like to include a clause in the escrow agreement that allows me to back out (while recovering my earnest money) if the inspection finds any major (as in, cuts the projected home value in half and makes the deal non-viable to me) problems. 

As @Michael Seeker has mentioned, you should not have any major issues with selling these off one-by-one. 

The 2 other partners would be putting the majority of the capital down and I would be the general manager.

Instead of hiring someone I took it upon myself to do the majority of the work since I have a background in construction.

I'll be in Charlotte for the majority of next month, and would love to start building some relationships when I'm there.

If this is such as major issue that they sent a letter around, and they feel everyone should do it, then the best way to make sure it's done is they make it building wide project.When they do these projects however, they either increase the monthly fees for everyone, or do a one time assessment charge.

Every property we acquire going forward will have to be carefully analyzed  to see how much we want to maximize the depreciation and risk the FFE "loss" on a 1031.Let's say the case law established what many deem to be true about personal property (1245) even within real property,  no longer 'exchangeable" through 1031, here’s a great way to get around out it (courtesy of the director of our 1031 department):If you do cost segregation, thereby identifying personal property, you can no longer 1031 that property, BUT, that 5 year property is not taxed as capital gains, rather regular income tax rates on the depreciation recapture…(still following)Potentially up to 20-30% of the value of your property, that’s a lot!

However, according to the Florida Department of State webstie, it does require each LLC to pay a $125 initial filing fee, plus an additional $138.75 annual fee (as part of the annual report you would have to file). 

Tearing down hazmat is different than a regular demo job so depending on the county you may have some extra costs on that side as well.Testing, clean up, and certifying costs can get really pricey really quick if you're going to do it the right way - but even after you've got it passed off by the health department, you will still have to disclose the history to renters of buyers.