Seems it would only be non-exempt if the member of the LLC was a corporation.AB1482 applies to all rentals except:Homes that are NOT owned by a corporation, real estate investment trust (REIT), or an LLC where one member is a corporation, AND tenants have received notice that the unit is exempt from AB 1482 in the form required by the bill.Thank you for the help 😀

If they don't actually own anything here, it's likely they will tell you advice that just doesn't really apply to the market or they won't understand which neighborhoods are what (neighborhood grades and street by street as they change).

If you truly want to protect yourself against STR regulations and ensure the value of what you purchase can be transferred (this last part is important) only buy where these three principles apply: (1) the use is allowed, (2) the use requirements are protected by in place permitting and licensing and (3) the permissions are transferable through a sale.

.- Having a set % and applying that each year is lazy and will result in higher vacancies.

@Vincent DeLucia check out our website where we have the entire Metro Detroit area listed by Property Class and the 183 Detroit Neighborhoods.Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Is there actual precedent where this has been successfully applied? 

Do it before you apply for a mortgage though because its required.  

It is working as intended and is not a way around things.Loophole-A way of avoiding or escaping a cost or legal burden that would otherwise apply by means of an omission or ambiguity in the wording of acontract or law.

As always, your tax professional should help you navigate these rules and apply them to your specific circumstances as with all tax law, there are caveats and nuances to everything which need to be examined!

As far as the SD, disperse it as usual...apply any damages and refund the remainder.