I know having a LLC/LLP would not offer a lot liability protection as the property is titled in our personal names.

The money person has zero liability & zero ownership of the property.

Since she is young, I've explained to her the important of assets vs. liabilities.

Hey @Paul Zackey and @Alex Cornwell,I have Limited experience, but I know a few contractors who do it (I cant personally reccomend) and a mortgage officer who is very familiar with them.

He is trying to obtain financing, however, he poses a huge liability risk for me.

Their investment is absolutely passive and as @Basit Siddiqi said when they pass their heirs get the step up in basis so the gain disappears and they can start over with inherited property and no tax liability. 

So after you're done rehabbing, if you transfer title back into your name, you'll have to wait an additional 6 months (unless you want to be limited by the purchase price as your value).

In the Denver area the trend is for the larger municipalities ie Denver and Aurora to limit STR to primary residences or stays or 30 days or longer.

None of our properties are RV parks or Campgrounds though, so we are limited by code.It works out good for us. 

I want to finance for purchase and cash out refinance some other properties which I own with 100% equity.My credit score is 740.My work contract is limited and will end Dec 2018.