By improving performance, you are "forcing" the value of the property to appreciate in value.It often comes into play at purchase time when you recognize you have a property that is not living up to its potential, and you pay less that what you know it will be worth with your improvements.

Given that it is primarily restricted to certain states, do you see it increasing in popularity among states that don't [formally] recognize the structure?

If they get into a scrap and he leaves, or gets put out, you could simply lock up shop and put the burden on her to go to court to force you to recognize her de facto residency, rather than you trying to figure out where he went and whether you can get any money from her. 

I recognize that with only 3 years of experience in real estate investment, there's still so much more to learn about the business.

When I say, 'properly', I mean you can still do a wrap around a conventional mortgage but the Mortgagee will not recognize the transfer of the obligation from Borrower A to Borrower B.

It's serious business and the lawyers hope for settlement (since they have a hard time proving a real recognized hazard in court) for thousands of dollars.

Social culture, accepting personal responsibility, educating oneself, not getting into trouble, enforcement and harsher punishments for gang-related and violent activity, responsible spending and even remotely decent financial choices (it's amazing how many people in the ghetto get weekly manicures and plasma TVs), additions, desire to work, access to food and heath care (mental healthcare included), safe childcare, etc. has to change before pretty buildings will improve a community.

If you haven't listened to the two episodes where he appears you probably should but you should also recognize that he's a salesman more than he's a real estate investor.4) for new investors you should seriously consider Brrrr5) multifamily commercial is an attractive asset class6) Brandon Turner is focused on mobile home parks7) David Green he's an impressive investor and frankly is more interesting than Josh Dorkin to listen to8) everyone who is interested in real estate investing would benefit by at least occasionally listening to the BiggerPockets podcast.9) real estate investing is not for everyone and it's important that you understand your goals before you start investing10) if you're thinking about investing your best bet is probably to do it sooner rather than later.11) go big or go home.There's a lot more I could say about the podcast but I will say this I really enjoyed listening to them but I don't think that any person should try to listen to them all in one year.

I used an Attorney to set up the LLCs not because it's difficult to do it one self, but because I want someone to blame if there's a problem

It is used to recognize the gain and what is allocated to basis.