Why can't you simply escrow the costs of the road repairs with the local government or provide them a letter of credit to accomplish this? 

Lots of tenants will try to use it as leverage at a later date....when they leave and you dont give the full deposit back.....when they are late on a payment..... when they screw something up and you make them pay for the repair. 

Having them keep filings up to date is small but one less thing for my "to do" list.

I don't believe you could benefit from the capital gains exclusion.I'm also not sure this arrangement even provides you any real asset protection. 

Would be happy to provide any additional information as needed.

I would suggest after reading into all the information provided by LO's above, which I wont reiterate, to find a referral from other RE investors in your area for private money.

Like you I see the great value this provides.

And has repairs listed at 16k-20k but from looking at the pictures provided I know it’s incorrect.

Also, provide a timeline outlining key milestones and completion dates.

For example if you are putting in 10 washing machines you will need more hot water capacity then a residential hot water heater provides. 4.