We got to the page that says:Due to the number of members in your LLC, you are considered a Multi-Member Limited Liability Company (LLC) as the type of structure applying for an EIN.Since you are a multi-member LLC, we must initially classify you as a partnership.

I'm looking to get some ideas on the best way to structure this so that everything is legit and all parties are protected.

Interesting property because there were major structural issues with the basement foundation.

Pouya,If this is a flip, the correct coverage will likely be a Renovation Builders Risk policy to cover the existing structure as well as the renovations.   

We had a seller disclosure which clearly stated no known issues of structural repair need everything is great blah blah blah.

The incentive structure is out of whack.

Did I read that right, or are you looking to sell and then structure a 1031 Exchange? 

Does seem like the ohio area is similar in build size, structure etc.   

If she is wanting to make some money off of it, you could structure the contract where she walks away with something in her pocket. 

I understand this may not provide the best structure for limiting liability (as would holding the property in LLC would).