You are implying that infant returns are reliable and operating at negative cash flow is just something to ," never mind" what if in your 3rd year of owning this property you loss 30% of your renters, a strong wind blows the roof off of your building?

Purchase Price55,000Value100,000Loan Amount64,500SNAPSHOTARLTV64.50%Renovation Budget15,000Sales Price100,000Time to flip (months)9Interest11.00%Purchase Price55,000Points3.00%Renovation15,000Mortgage Tax1.00%Interest & Origination Points7,256Transfer Tax1.00%Property Tax & Maintenance750Mansion Tax0.00%Taxes and Other Costs11,595Title Insurance1.00%89,601Broker Fee4.00%Property Tax and Maintenance1%Flip EconomicsTotal Profit on Flip10,399Acquisition CostsBorrower Cash in Deal At Purchase12,280Purchase Price55,000Borrower Cash in Deal (9 months)18,351Legal Fees1,500Borrower ROI on Cash in Deal (9 months)57%Mortgage Recording Tax645Filing Fees250Appraisal400PL Legal Fee1,500Title Insurance550Origination Points1,93561,780Interim ExpensesRenovation15,000Interest5,321Property Tax & Maintenance75021,071Sale Costs (Paid from Proceeds of Sale)Broker Fee4,000Transfer Tax1,000Mansion Tax0Legal1,500Filing Fees2506,750Sale Price100,000Costs89,601Borrower Profit/Loss 10,399

(This seems like crowdfunding without the benefit of the crowd, but play it out.)Would the individual get the benefit of the mortgage interest payments and the LLC reap benefit from the operating loss?  

If he has a financial statement showing the profit and loss that would be helpful.

Knowing if it is an estate can assist your search and also prepare you to be sensitive to the emotional loss of a family. 

It's also true that the ex might not want to sign or sell at a big loss.

Downtime and loss of rent was kept to a minimum.

What about a share of the losses, if any?

Paying all cash reduces your cash on cash return, but provides excellent cashflow and minimal risk of loss.

The stacking allows the liability coverage from both properties to cover a loss at either property.