You need to understand how trusts really work and how to make sure that you handle the trust correctly.

I need advice on how you would handle a situation where an early property liquidation had to occur for whatever reason.Scenario:Partnership deal - I found this particular property, manage it, and carry the financing obligation.  

That being said I think it could be challenging for them to find the right buyer - someone patient for a short sale and a buyer who wants to bring $72,000 in cash for liens and short sale negotiators before their downpayment?  

Have you been to Cleveland before , do you plan to fly out there around the closing or have someone local handle things? 

@Deddy W. this is definitely an issue for your attorney to handle.

Now when we sell this subject property,  should we distribute proceeds to each partner of LLC and they handle their taxes themselves OR, should we first take the sale proceeds into the LLC which will call for capital gains tax and then distribute funds to all partners and then again they may have to pay taxes as their income for the year on the profits.What is the best approach in such scenario.

I've been a SFR tenant in several areas of Florida, and in all cases, lawn care and HOA is provided by landlord while all utilities are handled by tenant.

I'd plan worst case 1 year, then go from there.If you can handle a 160*12 or $1920 loss for year one, then you should be good to go, or get that number as close to break even as possible.

/attorney that handles the closing.  

Doing rehabs remotely is very challenging to say the least.