Doing nothing may be correct for one person, and engaging in a complicated entity structure may also be correct for another person depending on the situation.Each real estate investor/professional has different risk tolerances, different levels of savvy, different abilities in terms of bookkeeping, different estate plans, if one has an estate plan at all, and different relationships.

If you structure your lease option correctly, it'll actually benefit your DSCR loan.I have a lease-option tenant buyer that's currently in a 10-year lease option with me. 

However, excessive shifting could indicate that the opener isn’t secured tightly or aligned correctly.

Once a default has occurred - be it missed monthly payment, note maturity, etc, the note holder or their representative send a letter to the debtor notifying them of the default and providing the statutory timeline for corrective action.

This means there are no checks and balances to ensure all transactions are entered correctly.

Finally, your hunch is correct: when the syndication cycle closes, your past "free lunches" will have to be paid for, aka recapture.Here're some relevant posts from your favorite site:https://www.biggerpockets.com/forums/51/topics/839015-are-sy...https://www.biggerpockets.com/forums/51-tax-legal-issues-con...https://www.biggerpockets.com/blog/real-estate-professional-...  

I appreciate all the food for thought!

Verifying rental history often takes a long time to complete due to applicants not giving us correct landlord contact information, landlords not returning our calls or refusing to give us any details.We also deal with applicants trying to have family or friends pose as their landlords.

Depending on the house, it can be a very quick correction by simply painting over the lead paint.

Here are a few thoughts about your comment on market appreciation:Cash Flow is a hedge against corrections.