You forgot one more dumb scenario from the penny-wise and pound-foolish, which is sticking all their properties under one LLC. 

@James Wise

While you may not necessarily have your neck on the line, your job is on the line and so I'm sure you are wise about your decisions when investing.

He wanted us to pull all our equity and retirement to pay for a cheap fixer upper SFH, but due to his unexpected PCS, we don't think that would be a wise thing to do while we're in separate states, both working careers. 

Net worth to cosign with is another.Lacking that, (as you said, run them) offering property management might work for some.But for some that will not work if the lender requires an experienced property manager in order to make the loan.Skills:Some of the things you should understand:  1. underwriting for large complexes to know what's a good deal and if you want to participate in the deal risk wise,  2. how partnership splits are handled accounting wise so you know what you and they are getting; and  3. how the IRS looks at transactions and income from group investments so you know what you're getting into and can make intelligent decisions from a tax standpoint.

They should not make assumptions, they should ask questions, if they want answers other wise they should just move on. 

Thanks, @James Wise I like the 3rd party property inspector tip.

@James Wise I dont have the best credit still building it.

@James Wise yeah that's what I am concerned about, Missouri is one of those states that  requires a license.

Other wise the house is appraised at the purchase price.