When adversity arises, its very easy to shut down, stop communicating and toss around legal threats.

There's nothing wrong with seeking concessions if there are issues that arise in the report, but using this as a strategy will garner you a reputation within the community if you are repeatedly going under contract and then seeking large re-trades. 

We are also quick to request members to vacate if issues arise.   

(If you did this, obviously, you would have to cover those needs, when they arise with money from other sources.)I imagine my beginner perspective is probably inaccurate in several ways.

So could you take out the $50 you need in a term loan and also open a LOC large enough to cover any issues that arise?

Let me start by saying I'm not interested in discussing the merits of owning properties in an LLC vs your own name so let's not hijack the thread for that purpose :) What I'm trying to determine is whether or not there can be potential issues with homeowners insurance claims if they arise.

There are so many contingent items that can arise. 

If you need access to the $200,000, you could use a HELOC to temporarily pull equity from the property when good opportunities arise. 

@Michael Anderson If the property had been sold, it would make sense to formally assign the lease and deposit to the new owner and memorialize an agreement to collect and adjust rents after settlement, indemnify the other party for things arising during their respective ownership periods, etc. 

This minimizes disruption if issues arise.