Hey @Kenneth Burdick congrats on getting going...I'm sure you are swimming in data, lol.

I also have a larger project of renovating a mother in law suite, but I'm using these smaller tiered projects to gauge the success/relationship I develop with the contractor. 

Subchapter K is incredibly complex.If you don't have the scale to pay a competent CPA to prepare the returns annually, and to pay a bookkeeper for the full suite of books -- P&L, balance sheet, and general ledger -- you should avoid creating partnership tax entities.

Purchase price: $139,000 Single family with mother-in-law suite, former 2-apartment set-up. 4 bedrooms, 2 kitchens, 2 bath.Structure: 2-story wood frame, full front porch, small back porch, cellar room, full-size unfinished attic. 4 fireplaces, slate roof.

I still think the law is unconstitutional and will see many law suites but that $250k threshold is a lot better and easier for us small timers.

Game room with arcade games, pinball, pool table, shuffleboard, darts & Big Screen TV'sThen there are the peacocking elements (Things that catch someone's eye and make your place unique): fire pit with custom octaganol bench swings around it, a tee pee on the grounds, yard games, swimming pool with a water feature or LED Lighting. 

The reverse is true, too: if a tenant in a RE investment property wants to sue you as the landlord, he or she will likely be able to reach your personal assets in the suit if you personally own the investment property.

I'd recommend finding a duplex or house with mother in law suite thats affordable enough and then fix up the part that the renter will occupy first to start getting that cashflow.

Because the insurance company has more to lose than I do, they will make certain to fight any lawsuit.I get threatened with law suits on a regular basis.  

File a Small Claims suit for the amount owed and secure a judgement.