Then he brought us this deal.

if your renovation cost exceeds 25% of the value of the home, then the entire home must be brought to code, for example. 

If you're not going to be on the property often, you'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.Creating an LLC in California would cost you a minimum tax of $800 every year (even if you form in another state, as you say).

You'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.Creating an LLC in California would cost you a minimum tax of $800 every year.

I have not got the exacts on anything yet it just got brought up in a discussion we were having that he was interested in selling his properties.

Agent brought it to us as he thought it was a good deal and that we could get it secured before others knew of it.After agreeing on price with buyer, we asked for an LOI.

And one we have implemented ourselves.. we have a path of progress property in Sonoma county ( Rohnert Park ) that just got brought into the city.. we paid under 30k for it 25 years ago and value today is about 3mil.. and we have another big play in Hillsboro Oregon 117 acres we optioned for 5.5 mil in the bottom of the recession of 09.. once brought in to the city this would be worth way north of 50 million..

He swung by again today and brought me doughnuts.

This property brought in almost 9k per month in rent average. 

Every little detail must be addressed or there’s problems .however, If he was going to do something unorthodox like this he should have brought that out to your attention before doing it .