@Eric Johnson This is not the best advice, and it goes against all liability fanatics out there, including myself.

I own 2 multi family properties (4 units each) and my lawyer advised I didn't need one for what I have but any more may be reasonable; however, I think an LLC is probably best advised on by an accountant for tax purposes and a lawyer for liability purposes.

Managers have a terribly hard job with massive risks and liabilities, involving another party simply increases that risk.  

Interesting concept but the little cash flow would not have been worth the potential liability risk at least to me. 

No one can really answer the questions about allocation of liability without knowing what your Operating Agreement says. 

Examples include:1) Liability - is your a tenant a license professional with liability/E&O insurance and workman compensation coverage?  

Additionally, this paragraph shall serve as the SELLER’S release of the Escrow Agent from liability for disbursing the Earnest money to PURCHASER,Clause #2:PURCHASER to have a period of 30 days following above Due Diligence period to secure financing at terms acceptable to PURCHASER.

Make sure your agent is including liability coverage and loss of rent coverage.

Is this the route you took.The reason you would want to put each property in a separate LLC is liability insulation.  

The home has equity in the neighborhood of35k total.I had planned on giving my interest in this home to her until my CPA informed me that if I dispose of the property I will roughly have a 9K tax liability I am on the quit claim deed but am not on the mortgage.I want to dispose of this property for financial reasons.I have paid the Real estate fees to sell the home.I am looking for ideas on this situation??