If you own a rental or two and can't sleep worrying about someone suing you then you might look elsewhere than any real estate investment.That said you can add many layers of protection.Individual LLC's for each property help by a master LLC held by a Trust etc to give you layers of protection.Insurance is your first line of defence, an umbrella adds another.Having properties mortgaged makes them uninviting to an attorney that may want to see if you have any assets worth taking.You can consult a Estate planning attorney for guidance on different strategies.If you are risk adverse you might want to look else where to invest your money.

It's just too messy and the organizations you owe money to will not care what your status is they'll just want to get paid.If it helps I would be happy to consult for you pro bono if you want to send the financials my way in a DM. 

The trade off is the lender sends in a construction consultant to review the property and estimate rehab costs for you before even talking to a contractor.

I would suggest consulting a lawyer

It is my primary residence.I know I need to consult with acct but does anyone in DC know tax implications in converting to a 2unit rental.

CVA Consulting is one of the most knowledgable Appraisal companinies in the city.

However consulting with a CPA should give you a better understanding as to what will work for your group. 

So essentially, as long each of your (up to four) partners have some sort of active role in your partnership, even a small one, you can partner up with them via JV (joint venture.)At the end of the end, always consult with an attorney.

This is something you have to look into when walking through a property or consult with your realtor. 

Or does the 203k consultant do an inspection?