That's a legitimate concern here in LA, but you can minimize your risk.

But it allows you to minimize your cash investment and have the ability to purchase a larger number of properties.

There is plenty to search on this topic, but yes an LLC makes sense, and for flipping/wholesaling you should look at electing to have it taxed as an S-Corp and doing salary splitting to minimize self employment taxes.

If you disturb more than 6 sq ft ( I believe that is the correct number) then Your contractor must be lead certified and take extra steps to minimize lead hazards from renovations.

I don't like walk throughs with the tenants as they are usually too quick to spot things that may be hidden or to ascertain the true cost of repairing/replacing.My experience is that tenants tend to minimize their damage costs during the walk through.

You'd pay your first unit down or off in record time while getting into new construction for long term cash flow and minimal maintenance.

There's not much margin in it, and it's more of a favor or good will gesture, so I want to make sure I minimize my risk going into this.Thanks in advance for your thoughts and suggestions!

Homes were bought from the bank for around 18K- 20K a piece, and seller is looking to basically wholesale the houses for a quick profit.The idea is to buy them with HML, do the minimal maintenance and repairs required to get them in shape, sell 4 of the 6 properties for around 1.5 times the purchase price, keep and rent the remaining 2.If there is still money owed on the HML, then I will create a note on 1 of the remaining house and sell the note to pay the HML.-@150 K (6 houses)+@150 K (selling 4 of the 6 after repairs)if a balance remains,..@75K (value of remaining 2 house after repairs)..@10K (a year in rental income including taxes, insurance, home warranty)Create a note on one of the properties and sell it to cover the remaining balance of the HML=Hopefully passive income and a good amount of equity.

We really have minimal issues with the shared housing...hardest part is the initial lease up.

In Oregon any financing of a 1 to 4 unit is covered by dodd frank..... although if it is investor to investor the paper work is minimal but you still need an NMLS license.I believe AZ is the same way ..