But you'll have to come out of pocket any time you have a vacancy, any maintenance, advertising, legal fees, evictions, tenant damage, deductibles for insurance if there's a problem, etc.

(unless you've got 20+ properties, in which case you might want to open a separate LLC just for PM of all the units) If there is a legal employment agreement (or "work for hire"/independent contractor) in place between the LLC and you the employee, then only the assets of the LLC can be attached in a judgment and your personal assets are safe.

Mike, I started another topic here regarding the legality of bird dogging: http://www.biggerpockets.com/forums/48/topics/21214-help-me-understand-bird-dogging-?

I use 2% as my basic guideline for purchase closing costs.

Since I have decided to always carry where legal, I feel it is my responsibility to be able to handle my weapon safely and effectively.I have never had to fire my weapon to protect myself but I have drawn it and in that instant I realized two things.

I postponed everything until Monday because the legal description of the property was too vague and did not specifically mention that I am purchasing two lots.

and then I was just reading a post that made it sound like you don't really get that much protection from the LLC if it is either single member (which we might do to avoid the partnership tax return) or if the only members are spouses.And then to really confuse me it seems like with the new guidelines that you can't quit claim the property into the LLC until you are absolutely sure you won't refinance which would seem like never to me - I guess I would always want that option.So I guess my question is for a new investor team of spouses what is the best direction:Set up an LLC?

I do not smoke it but I am glad it's finally somewhat legal here and even in Michigan now.

Is it legal?

Add in principle payments, taxes, insurance, association dues, vacancies, maintenantce, advertising, tenant screening, legal fees, evictions, tenant damage, etc., etc., and you're in the hole several hundred, maybe even close to a thousand a month on that one property.