Is the value of those additional parking spaces worth the 60K annually in potential rents? 

Having legal title of a rental property in an LLC limits (read: contains) liability from a potential cause of action within that same LLC. 

It is a great solid area with continuing strong demand and good rental potential.

The heavy lifting is in WORKING the deal, not uncovering a potential deal.

If it's a bad investment, get rid of it before prices potential drop further depending on where he lives.

I'm not saying the project won't work, but for me it would be worth less to some potential buyers. 

Considerable potential for cash flow, especially in certain neighborhoods.Best of luck in your real estate investing journey!

We know there is potential and you make a good point, its easy to get cold feet.Bjorn what other types of opportunities would you be considering if you were in my shoes?

You two need to be to decide and/or resolve conflicts over such aspects as:  when/what/how to repair/replace something (lots of finger pointing potential here), rent amount, keep or let go tenant, what to purchase for, how to deal with tenant, how to dissolve partnership if necessary, what to sell it for, when / how to refi...Most of all of this should be worked in the Operating Agreement in black and white. 

They offer strong rental markets and attractive investment potential.