As it was he finished the building with contractors that did not even carry liability insurance and to top it off some were his very own relatives.

Do you have the cash if it is empty, also know as carrying cost?

@Tom Vesel have you spoken to the family about a short term owner carry?

The price points are much lower in Arizona than in California, thus the barrier of entry is lower and the risk as to the amount of possible loss is much lower too.In some markets, it is much easier to find properties that make good investments.

If that is the case, those properties are usually best left to the local investors who understand and want to take on their own risks. 

You will want to make sure if you do not want to risk paying to build something and then paying a seonc time to have it all torn  down again. 

Beware: this tendency carries the very real danger that we may come to believe we are living in a world that is very different than it actually is.

Between the annual reports and filing fees, and also the overhead necessary to maintain separation of assets so the corporate veil isn't pierced, the cost-benefit just might not be there.Might make the most financial sense (and most streamlined) to run her as a sole proprietor (Sch C) and carry appropriate and adequate insurance, which you should be doing anyway with an LLC. 

Most renters will not pay renter's insurance and that is a choice but how would they like not to have a choice about carrying insurance because of the potential liabilities and expense should you come up against someone like them ? 

Whether or not you want to live off the cash flow, why risk your money for a property that doesn't cash flow?