The number of private landlords sued for more than their insurance will cover is astronomically low.The best protection: follow the law, and treat your tenants honestly.

I'm familiar with how a hard money loan is structured, but structuring a deal from a private lender seems like the wild west.

Quote from @Evan Polaski: @Enrique Roth, every investor should be preparing a full appraisal package.In mine, I include 1. before and after photos, 2. 5-6 comps that I want the appraiser to use, WITH explanations of what the comps have or don't have compared to mine.  

Speaking to an asset protection attorney about this where you can discuss your personal assets and business assets in a private conversation might be something you would want to look into.

If you need more information pls send me a private message or just reply my post thanks

Especially if you/PM have photos, videos, police report, etc of the home before and after this guy came through, creates a damning story/video.

STR is much different than MTR in amenities and the avatar of your guests.Who took your photos?

Take good photos and write a good description and you should be fine. 

@Tom Dean - alright private message sent! 

I have been looking at local private lenders, too.