This is also more a retirement plan for us or we are looking more at the equity we are gaining (that others are paying).

I told him I can purchase the property as is, no need to fix anything. he told me he can't sell the property with that type of problem. im not sure if it has something to do with legal issues or if he just does not want to sell until he fixes that himself. the conversation didn't gave me the opportunity to ask this question at that moment.

Also on whether to retain the tenant or get a new one, it's almost always in your best interest to retain a tenant once you factor in loss of income b/c of vacancy period and then construction period for new tenant), legal fees, broker fees, etc. 

That leaves us with a decent profit.But, how do we know how much to set aside for capital gains taxes? 

Sorry I am very new and do not want to screw up with a legal contract.

Anything i can do to expand my network and gain new friendships would be beneficial to me. 

There is a default clause in the note purchase as well that converts legal and financial responsibility back to me if you default within 3 months after the sale of the note. 

In analyzing my numbers I’ve even tried to settle for a minimum profit just so I can get in the game and gain some experience.

But from a legal liability standpoint and tax purposes, its your best option to file an LLC.Onward.sjw

My original assumption was that since we bought it together in cash through our LLC, we would need need to cashout refinance it in the name of our LLC so we would both have legal tie to the property through our LLC.