The argument I hear most often in favor of additional 12 month terms at lease fulfillment is avoiding turn over costs, and vacancy exposure since "all the tenants could leave at once," but I find that even if the tenants leave we are typically able to refill the units immediately anyway, so that shouldn't really be that big of a concern.

@Benjamin SussmanFor real estate, it is when your exposure is so high that if a few renters stop paying you can’t afford to cover your expenses.Example:Let’s say you have W2 income of 5k / month (net)Your expenses are 4K a month so you have our 1k left in your pocket every month.

Looking for private money or low exposure lenders.

I might be able to partner on it to reduce my exposure as it would be a significant amount of my unused savings - meaning, savings minus my emergency fund and many other investments. 

Which leaves you to working with unqualified buyers or at least paying for the buyers agent.The legal side of things is only getting more complicated and you have significant risk exposure. 

Otherwise, you can put that money to far better use somewhere else and have multiple homes appreciating and spread out your capital exposure risk (rather than having all of that risk in one home). 

This cost carriers billions and their response is to raise rates everywhere including areas with less exposure.

@Shervin Esfahani I don't have direct experience building them myself, but I have some exposure to SRO uses and applying them to new builds. 

The key here is, if the agent cant get a buyer with maximum exposure, how can a new wholesaler?

If you purpose of moving into the LLC prior to selling is some idea that your tax exposure will be reduced, you are incorrect. an LLC is a pass through entity and it is not a tax shelter for your sale.