The biggest issue I observe amongst real estate investors is the inability to articulate the reasons why they should transfer properties or simply own properties from day 1 in an LLC.

Simply letting your mother live in the property rent free would make it personal property. 

You are simply NOT operating correctly.

I don't think I fully understand using HELOC to pay points and holding costs only.Taz, that was my initial thought as well - even though it would hurt to get rid of a 3.5% interest rate, I could get an equivalently priced home with today's conventional primary residence rates and have about the same monthly payments that I have today, simply because of the HOA fees. 

If not, do you materially participate in the syndication or are you simply a limited partner?

Simply document your attempts to remedy the issue.

I simply said the issue wasn't a lease item, but he was welcome to walk over and talk to my tenant...he never did.

Sure, in theory, the strategy this investor used might sound clever, but it’s also incredibly risky to rely solely on the compliance of a borrower—especially when they might not fully understand the terms or simply can't agree due to their personal situation.I have tons of ideas that might look good on paper, but I don’t pursue them because I assess the real risks involved.

On the 7th day God rested created Columbus, Ohio.

I earned good money as a server and simply used it to go on my next adventure and that was all I really needed.