The cost of stabilization will be higher, but the benefits will be greater.

.- I have a mixed use property with 2 commercial spaces rented for the last 2.5 years and 1 short term rental/residential space I have airbnb'd/lived in part time for the past 2.5 years- I owe about $110,000 and have about $200,000 in equity- My credit is 580 - 620 right now due to being laid off last year and missing a couple of credit card payments.

I do keep larger multifamily in separate LLC.To do one LLC I have multiple bank accounts (taxes, rent deposits,  operating and reserves),  seperate credit card, tax ID, tax filing, property management login, and email. 

That's the benefit of buying a primary home.  

You pay the whole bill and set a fixed rate for each unit and some months you will be over, some under - you end up eating the cost/reaping the benefit month to month.

If the basement was finished it would be about 1,500 sq. ft.Option 1- Fix & RentCost of Repairs: $10,000 (Estimate to get the house rent-ready, would leave the basement unfinished)Market Rent: $1,100Monthly Profit: (Rent $1,100) - ($700/month) - (8% property management cost is $88) = $612/month Other Benefits: Tax write-off, continued appreciation, continue to pay off mortgage, risk-management against my other rental property, passive income.

Make sure everyone is at least 20% members but that will create the umbrella necessary to get everyone “credit” on paper and allow them to start their investment journey. 

@Axel MeierhoeferThe sec compliance with this will have your head spinning as you would need to make sure each investor had equitable time to use a property as you cannot provide a specific benefit to two investors if in the same share class.If things go wrong with this or an investor gets upset and sues the risk you would be taking and the cost for D&O insurance would be through the roof to keep you out of prison.

After the monthly cash flow, you are also getting appreciation as a benefit, even if you're not realizing it immediately.

I want to give him benefit of the doubt but I can't help thinking that he is trying to break the lease given the clues that I have been given.