If our LLC saves one law suit based on appearance then that is bonus as our LLC is not structured to provide real asset protection.In summary, do your research on what is required to have the LLC provide asset protection (such as having the properties owned by the LLC and issues purchasing non-commercial in an LLC and risk to loan in transferring a property to an LLC) as well as the CA requirements limits on the use of OOS LLCs.Good luck

I just really don’t like holding RE in my name (for privacy and risk management reasons).

□Have you reviewed your asset allocation (based on current equity values and debts) between individual LLCs so that your investment risk is diversified?

In such cases, you will need to do some risk assessment to see what if any concerns this common walkway raises.Just as an FYI, a lot of work I did as a real-estate lawyer was to review the title searches done by the searchers.

My risk tolerance is high but I also want to be smart about it. 

Bottom line is not all that glamorous but pays the bills.I think your idea is great, it requires skill to put together a spec build, design, and sell, not to mention finding the right deal will also be a challenge, the good thing about it is there is less risk of the unforeseen factor aka surprise expense.

I don't like to beat around the bush, and there is no risk in asking the questions?

If you did a true sub2, where title transferred to the buyer, you no longer have title and have No ownership or rights to transfer title, and no right to foreclose unless you did a wrap, which means you only have the right to foreclose.....this is the risk to a seller doing a sub2.

Stick to a proven entity that has a good track record and fewer risks.

One trick I've used is to lease to cat owners, less risk of this happening once the lease is signed.