Your financial discipline in being essentially debt free is very admirable and speaks volumes.

I remember speaking with you briefly at the last BP Dallas meetup.Michael Attaway Here's to both of us being successful on our new real estate journey!

Keep in mind that there are a ton of of threads here to search through with pages of discussion on entity structure.One thing that has been discussed in those threads is the possibility that by transferring your property with a residential loan in your personal name into the LLC you have "pierced the corporate veil" negating any benefit of the LLC.

Also both of these are speaking to cash flow investments, if you invest in appreciation markets like much of CA falls into then you're playing a different game so you have to use different rules.

Someone mentioned that you can get satisfaction when speaking with their possible future landlords.

I guess I just felt like water in an old basement when it rains heavily obviously doesn't negatively effect the structure of the home since it has likely been wet since 1938 ...and if it is not a living space, why does it matter to a renter?

Keep in mind I am speaking generally and state laws can be very specific about handling of security deposits.

Temporarily absorbing a negative cash flow is fine for many investors if the price and terms make sense.Best wishes,Dawn

Generally speaking, what works well for 1 families should be even better for 2-4 families.

One key thing they are looking for are NSF charges and negative balances.