A person for whose benefit the bond is written or his legal representative may bring an action in the district, common pleas or municipal court where the landlord resides or does business for collection on the bond.Bottom line, if the landlord obtains a bond, the funds can be co-mingled in the landlord’s general operations account, from which normal bills are paid.

If you get a 50/50 split from the get go with no money contributed, then you could immediately force a sale and collect 50% of the net proceeds without doing any work managing the property. 

There may be some other ways of defense and we are proceeding with the attorney’s help.

So you'd take the proceeds from your refinance, buy another home and fix it up, and then refinance that one - over and over again.As for an LLC, do a search here - you'll find many many opinions on LLC or not. 

Proceed carefully until this bill passes as is or not.

My downpayment was 1031 exchange proceeds from another property I had sold a couple months back.

I'm doing a 1031 exchange and am currently working on finding properties to purchase with the proceeds.

Doing a 1031 exchange with the proceeds into cashflowing multi-family properties Lessons learned?

This will be boot/a taxable event, but I am trying to make sure that doesn’t ruin the whole exchange and that she can still proceed with an exchange with the remainder of the proceeds.

I recommend understanding the value an appraiser will provide for the ADU before proceeding.