It is certainly a lot less headache but of course, there is a little bit of risk to it.

one thing you have been missing is the risk.

U want your parents to talk to their CPA FIRST.. if they go the development route they are now ( depending on the amount of units) creating inventory.. which will be taxed at ordinary income rates ( very HIGH)if they just sell they can 1031  and move on to something else.. many times when you run the math consider the risks of a partnership.. the sale of the land is far better than thinking your going to make some profit.. 

@Jaime Powell - hey, we are based in the ATL, and I've closed several loans (fix/flip, rental, STR) in the Augusta market.  

Hi @Anthony Caiafa - I currently have several flips with a trusted GC where we are a 50/50 partnership. 

Which can cause higher risk of the deal falling through if any of those parties fail to perform.

The rest of the ENTIRE house had a pile of empty beer cans several feet high. 

It really doesn't bother landlords...The main risk for you is if you pay out a commission, but the tenant defaults before you recapture your commission amounts.

We've typically either structured them with a new LLC with a solid operating agreement laying out everyone's duties, contributions, percentage of risk, and percentage of profit.

It can take several years before the prices come back up to pre-drop levels, and then as per the usual cycles, continue higher.  3.