These areas have huge commitments to public employee unions, and have borrowed hundreds of millions and some billions, of dollars for improvements etc., they can no longer pay...

That way everything is in place from day 1 of your first rental.I've heard that even if you have an LLC, if the tenant knows your personal name, they can go after you personally regardless of the LLC being the actual "landlord".This has been a huge topic of discussion here on BiggerPockets.

Some of the solutions being discussed like eminent domain to avoid FCs have never been considered before.

I’ve started this discussion before and can’t resist posting a similar discussion again on this topic.

LOL Probably depends alot on the area.Maybe he could sell to an employee there.

I'm still not clear why you think he was not an employee of the company on the transaction.

With the disclaimer that everyone should talk to their CPA before proceeding to discuss their individual needs and personal tax situation, I think it's best to operate out of an entity.

I try to keep this from happening early on in the discussion with my contractors -- I'm nice, but very firm about my expectations (and what I have to offer in return for working with me).

I've not tried this, but I have read discussions about this sort of thing.3 is a contribution.

Here's a recent discussion about small loans:http://www.biggerpockets.com/forums/51/topics/75707