I think the both of you are saying that the lender on the HELOC (house 'A') could possibly come after my other house(s) or, if I "carry the note" on house 'B', the bank would be the recipient of the monthly payment from my tenant/buyer until foreclosed deficit (from defaulting on house 'A') is reached and/or, my wages could be garnished.

Being new to this industry and my market, i thougt it would be best to put it under contract and wholesale it to an investor who rehabs this type of property.I contacted a fellow investor that i had met s few times and told him about the property and my intentions.

There is a deed which grants ownership as I described and a Co-Ownership Agreement that says they get the upstairs and we get the down stairs and defines some general obligations.The agreement was drafted in the 80's for our respective parents.The language is vague and poorly written for it's intended use.With regards to FMV of the rents paid to the LLC, I have no idea how they are substantiating the claim.I am very interested in your assertion that the existing form of ownership would not qualify for a 1031.

Basically move in ready meaning maybe it needs $5000 or less for any cosmetic fixes, new appliance(s), or the like.Flipping doesn't seem like the route for me as I have no construction experience, therefore labor costs would offset most of the gains...or am I wrong?

Ibrahim S - thanks.

How to handle Returns, %'s, my time managing the renovation, then my time managing the property, etc......Keep in mind I am interested in buy and hold, not fix and sell.Slightly complicating this is that though I am a buy and hold guy I'm not thrilled about the idea of holding a property for several years with a relative knowing the property management issues that might arise.

Does not have to be an LLC, could also be an S-Corp.2.

ana=e_du_wknd&s=article_du&ed=2013-02-16&u=lQmEp720OYSChrt7MbQ4NbiNrqoLand is good.

The partnership should file its own return and should K-1's to each partner (you and your brother).

S.