Under the laws of most states, when a corporate entity is dissolved, until a court appoints a receiver, the business and affairs of the entity shall be managed under the direction of the trustees of the entity’s assets to undertake the acts necessary or proper to liquidate the entity and wind up its affairs.In the context of LLCs most state laws permit the remaining members (or sole surviving member) of a limited liability company or, if the LLC has no remaining members, the personal representative, guardian, or other successor to the last remaining member of the LLC to wind up its affairs.The title company needs to do its research and not resort to the "you need to reinstate the LLC" position that many default to.

Net Operating Income / Property Cost = Capitalization Rate

If you need to build reserves after acquiring the property, allocating a portion of the rent towards reserves is essential, aiming for at least 10-15% of the gross monthly rent until you reach a comfortable level, ideally 3-6 months of rental income.

What if it sits vacant for a month, and you lose the entire $3,500 rent income plus the cost of utilities, lawn mowing, and other expenses?

I'm curious on how best to structure this approach: Who owns what, who gets what, rental income & depreciation (all tax treatment).

The remaining 1 million have a higher percentage of owner occupancy and also higher median income.

I want to get into the market and begin adding to my portfolio and passive income.

Or do we get through that quick and into more advanced exercises for the majority of the course like practicing deal analysis, running numbers, finding/managing/contracting with contractors, corporate structure, etc?  

He’s aware there is likely a tax implication on the income of the LLC but main concern is if becoming a part owner would affect his eligibility for capital gains exemption thru 121.

Loss of use coverage provides insurance against the reduction in income it doesn't obligate you to keep the tenants lease going.