Partnerships tend to blow up, like any relationship, when roles aren't clearly defined early on.

@Dylan Smith this is one of the biggest investment strategies that BiggerPockets and investors alike advocate to newbies.

Rita -  I recommend the Henderson-based, SinCityREIA, hosted by Omar Merced.I went to the Dec meeting last Thursday (my first time) and was blow away with the group's energy and diversity of related business interests.  

Regarding an LLC and protections, here are some blog articles you should read:Top 3 Real Estate LLC Myths BustedShould you Put your Rental Properties in an LLCI would advocate NOT co-mingling your personal funds with your business funds.

Make a seller and offer and they are offended :) thats were you need and agent to keep everyone grounded and not get frustrated or upset and blow deals up.. 

Could all of this blow up and crash?

Miscalculation on counters by a few hundred is one thing, but a roof or HVAC can blow your budget.

Up until that point I was blowing money all over the place.

To be honest, the best possible answerer is right in your friend’s history: When he applied for Disability, there was some professional who stood up for him and advocated on his behalf.

I'm not advocating either way on doing that but it's a workable approach to addressing his objectives.