Even with this "Happy Outcome" don't do this with your relatives or friends. 

He said LLC's cause a serious problem when you want to transfer properties to a spouse, when transferring to children and when you pass away and your relatives inherit your properties.What the problem is; when you transfer properties, at least in California, to a spouse there are no capital gains taxes to pay, but when the property is in an LLC the property is no longer personal property.

Defiantly try to con your relatives out of a house.

It's a judgment call on whether to bootstrap / partner with your relative on the MFH.

If you want the real numbers for a sale get a market analysis from your relator. 

At $4000000 plus holding costs selling at $420000 your relator commission of at least $20,000  will kill any profit and that doesn't account for holding costs. . 

Hey @Andrew Graham,I would ask your relator to help you with your numbers you use for vacancy in the area, maintenance can vary by house depending on what items that need upkeep, the year the house was built and so on.

You may not own property this way but it may solve your issue of having your relative and yourself into a 2 bedroom while coming out of pocket for not too much more than you currently do on a monthly basis.

do you have a contract with your relator.   

But if you do get your REL I wonder if an REA can see MLS in other states?