I am confused as to why they wouldn’t have just formed a multi-member LLC and both have limited liability versus the LLLP structure that seems to mandate one person to be listed as the general partner (who now has personal liability) and in my opinion appears to defeat the whole purpose of creating the entity in the first place.

It has a bad roof, that alone is a big undertaking, I'd also wager that unless the HVAC has been replaced recently it may have some issues too, they just may not be obvious as it is currently December.3.

The protection from fraud that consumers have with an ACH payment versus a credit card payment is that the consumer has 60 days to complain and have an ACH payment immediately reversed without any research into whether the ACH was legit or not.

Also consider it is usually easier to refinance a house and pull out your original investment versus land financing.When I've looked at the land vs rental house equation I've always choose rental house. 

This makes it an easy decision to partner versus a shot in the dark as the pieces fit.

@Siby VargheseHow passive do you want to be, versus how active do you want to be?

What are the advantages of initiating a new tenant agreement with initial month-to-month terms versus the more common initial 1-year agreement? 

My accountant has questioned whether it's worth the cost to set it up and manage (s corp) versus just doing all LLC's. 

Check your projections versus the 50% rule (which includes PM and us conservative in high rent markets like San Diego but remember I want your projections to be conservative).  

There is still cash flow in Bakersfield which is very rare in a California community, and at the end of the day we are still in California so there will always be a pull to live in this area versus some of the other smaller markets around the country that can provide similar cash flow.