After talking with my agent and she did a little digging, the owners on in 2 law suites just on this one property.  1 is with a injury case from a former tenant that has been going on awhile and the other is one of the partners is suing the other partners on. 

Sooner or later some of these deals are going to start blowing up, and when that happens a lot of lawsuits are likely to follow, as well as complaints lodged with the regulatory authorities.

I would establish all payments and rent collection through the Traditional LLC, and if there ever is a law suit you can dissolve it and start a new one.I would house each property into a Land Trust which I would be the Trustee, and the LLC would be the Beneficiary.

Finally, the relationship you keep with your property manager will define your ultimate success...my clients all know that if they have a catastrophic loss, a lawsuit, or most recently a lead paint exposure report from the local health department we will work together to resolve the issue professionally and ethically.

I might try to look for homes with in-law suites that I can rent out separately short-term or airbnb out, but this is very restrictive. re investing: My husband and I have FT jobs and don't have the time or comfort to invest in large properties out of state. 

The way we, who syndicate real estate deals for a living, protect ourselves from disgruntled investors with potential lawsuits is we COMPLY with Sec D 504, 505, or 506 of the Securities Act as amended.  

If you fail to follow the rules, you may open your personal assets to a lawsuit.

This was a single family residence with a mother-in-law suite.

This was a single family residence with a mother-in-law suite.

Before you listen to the Scott Carson (We Close Notes) Series on the various markets across the country, you might want to know who you are learning from.Please check out investwithscottcarson dot comwww.investwithscottcarson.comThere are now over 24 filed lawsuits that I know about (although only 18 are posted on the website, because my web designer is behind).I am trying to prevent this from happening to anybody else.