And then you have a TVM problem as though payments occur over future months (for him, though he may not recognize it) and a higher than 15% incremental tax rate problem (he will probably recognize this one).  

@Kevin Sobilo Thanks-Yah I don't really think anything shady is going on, I had a similar issue occur in my primary residence and when they gave me the initial quote I figured it would be higher, as this stuff always seems to be.

It's likely the bulk of your development is going to occur in years 0-3 and assuming your team provides you with the aforementioned things you'll likely achieve success much faster than you would on your own.

If she accidently backs the boat into the house and causes damage you want her insurance to cover it.On another topic you didn't raise.... 

My wonderful Step Mother beat cancer but my younger sister was in a car accident that crushed one of her ankles and broke her tail bone.

Construction sites are a high hazard zone and there are workplace accidents on constructions sites constantly.

I think the bad situation occurs when you have a tenant that thinks they will live rent free with zero consequences.

And that if an accident happened, they would first sue the business, then sue the homeowner, and that their business insurance would not cover me.

So even if you pick a state with stronger protections like WY or NV, the cause of action arose in the state where the tenant fell, so likely that the court where the accident happened would have jurisdiction.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

I look at RoofStock everyday.With that dilemma, it just occurred to me that why not just invest in a new development.