Most residential real estate developers have a certain operating expense margin they are budgeting for in order to make sure they are hitting their return requirements.

I can understand the temptation of wanting more rent from your multifamily home however I would add this to your train of thought:What would happen if your tenant in your illegal basement unit burned down the house which caused another tenant to get hurt or even die?

Do you recommend an operating business account in which I collect rent from and pay expenses if either STR or LTR entity and if master expense (ie.

Also, many lenders are picky about the operating agreement and structure of the LLCs.

I also own a short-term rental management company that partners with other real estate investors and second home owners to 2-5x their returns while also taking the headaches out of operating STR’s.

@Agatha OliveiraSharing an operating agreement does not pierce your LLc and every contract you enter into the company should ask for a copy of the operating agreement to confirm the person signing has that authority

For that reason I built a full-functioning cash flow model taking into account hard money, the mortgage refinance and all relevant operating expenses to assess monthly cash flow.

Just like any real estate investing, there is always risks but we are well trained in the community on how to ensure we are protected (including the right paperwork). 

Although I am not sure how to enforce this one, there should be active, on-going communication from the the borrower to the lender .... as one would expect from a GP/Operator to the LPs in a private equity syndication. 

I would love to meet some new members, young or no, whose goals might include a solid cash flow and providing good value to renters who are exploited or poorly treated by unresponsive landlords or large corporate operations.