@Joey Chalhoub This decision should be read narrowly to address statutory frameworks such as MN where state law permits it to take property to satisfy real estate taxes/penalties/interest, sell it, and keep any surplus outright.

They keep inside liabilities inside and outside liabilities outside.Location of LLC?

It means the seller has listed the property with a flat fee listing service.

Or just keep renting and saving in San Diego where we're familiar with the area and the market (which could take awhile, while we are probably 3ish years away from investing in a Midwest market).

Haha, doesn't mean I can't be convinced to head in that direction though. 

Quote from @Rafael Valdor: I hear horror stories about renters all the time, but that doesn't mean all renters are bad.

Any advice on how to navigate this while keeping the deal intact or potential transfer of partners would be greatly appreciated!

I have 2 options:- finance the construction pre-selling the apt, and take my profits (expected to be around 700K pre-tax); or- finance the construction with a 6-7%/year loan (collateral = my house), keep the 10 units, and once the building is completed in 24 months, rent them for circa 180K/ year gross.

So, generally, they'll talk to you with rose-tinted glasses and have you drink the cool aid.It doesn't mean you can't find a deal though.

I keep reading about all the weird financing issues in this space so I wouldn't actually put money in until mid 2025 or later.