You should speak with your own lawyer about what you're legally obligated to do or not do in this case.I truly think the ethical thing to do is to sell the house for $190K and give them the credit.

There are two aspects to business entities, the legal side and tax side.

This means it is shared loss/gain proposition and you assume potential liability for any losses including legal issues that may arise.Essentially, your betting that your operating partner has the skill and experience to find, rehab, and manage the property.

I don't know if that is legal if your name is in any way attached to the LLC.

That is, it may not discriminate against families in which one or more children under 18 live with:A parentA person who has legal custody of the child or children orThe designee of the parent or legal custodian, with the parent or custodian's written permission.Familial status protection also applies to pregnant women and anyone securing legal custody of a child under 18.http://portal.hud.gov/hudportal/HUD?

Lawyers are good for legal questions, not necessarily real estate investing questions...To your first question, *some* REO sellers have 90-day resale restrictions, not all.

Effectively you are 50% owners but legally you are the owner (also for tax purposes-- i think).

1) ALWAYS get a detailed application. 2) Ask for references - landlord, personal and work related 3) Have THEM provide a current credit report - in my state that is legal - this way you create at least a "semi weeding-out" process right there.

I have no idea if there is a minimum number of units for legal reasons or if this practice would be legal in your area.

The legal ownership is not as important as your residency status on the house.