In the end, it protects both of us from misunderstandings, which can lead to hard feelings.   

Same for a lot of other RE jobs like wholesaling, property management, developing, etc.If you're holding rentals then owning them by an LLC might give you some asset protection. 

If anyone is interested, I wrote an article about a case involving Encinitas, California homeowners that sought to protect their homes by fixing seawalls, but ran into the force of government.The California Court of Appeal Allows California Coastal Commission to Force Permitting Concessions for Seawalls on Encinitas Homeowners - http://www.businessjustice.com/the-california-cour...

A good HOA will protect you from coming up with large sums of money for deferred maintenance. 

Plus you still protect yourself from ridiculously high bills and your tenants will remain conscious of their usage to avoid having to come out of pocket.

We own a property and instead of investing money into repairs we want to partner with someone to manage & fund the rehab, and share in the profit.We are moving forward with someone already, but I am not sure what is the best way to protect all parties ownership.

What structure has the most tax advantages while protecting its owners and allowing for the use of investors? 

Even if you have an LLC, you need to maintain the formalities of the LLC in order to use it as effective asset protection. 

Doesn't a quit claim nullifies the existing title insurance and thus C would need to buy a new one to be protected? 

Don't violate any protected classes.First time renters: I don't have a policy for this.