In terms of ROI typically I try to price it so that i make about 20%-40% of my money back in the form of equity and operating income.

@Joe Villeneuve it seems you are operating in an environment I am moving towards. 

Assume your buddy is going to prison and decide if you can operate without him being there for you. 

The goal is to bring together the brightest minds we know regarding syndication, how to replace your income, self directed IRA, how to crowd fund, and advice from private equity and student family operators with well over $100M in assets (both did this in their lifetime with zero inheritance).

Then if you want another degree of separation, you can then create a side traditional operating company that owns no assets but does all your contracting for you.

Your intention would be from the communication that you had when you bought the property, or your communication with your contractor, or documented in your overall business plan or LLC operating agreements and stuff. 

If a comprehensive policy, your policy might cover legally required costs associated with complying with the law due to a covered insurable incident.

For instance, a 5 cap simply means that if you purchase an apartment building with no financing involved at all, the building will produce a 5% return after your operating expenses.

(Even discussing a home for sale that you don't already own is a license-required activity in MA)Remember that we operate on 100% commission. 

I deal with this issue by creating an operating agreement under which the LLC can function.