And the trouble spots where these occur generally remain consistent across locations.An industry expert on how you can better protect your properties.You’d expect the problems low-income property managers face to be much different than those of someone managing luxury developments.

I've changed the details, to protect the guilty.1. 

What is the best approach to protecting both parties when partnering with an investor for a fix and flip. my thought was to purchase the property under my newly formed LLC.

Retail flips are time consuming, a PITA to coordinate multiple contractors, you have to go to the property a bunch of times, and there is a lot more risk involved. 

Advocates for LLCs owning properties always underscore the value of an LLC to protect the properties it controls limiting liability to only those assets in the LLC. 

Are you looking for an attorney for leases, entity formation, liability protection etc.Are you looking for a CPA for real estate, your real estate agent business, or something else.Do you really want local?

I'm guessing when a lender is involved extra steps are taken to insure that their investment is protected.

The initial negative cash position consumes the initial cash flow to recover the negative position.  

That alleviated my concern about a failing unit while protecting my wallet from an unnecessary capital expenditure. 

CA does have a 'source of income' protection that is specific to income provided as a housing subsidy (Section 8, VASH etc).