Thank you for pointing this out as it’s definitely an important distinction - investors have no legal obligation to invest.

Representing Boulder here (west of town in the mountains, important distinction as you know).

Being sued by a tenant and financing are distinct from each other and as such should be treated accordingly (apples and oranges, or apples and gorillas).The LLC structure has many benefits in real estate investments.

Can you please say a bit more about the distinction?

There's the distinct possibility that since the place is built in 2013 and in good shape that I might be able to cobble together a team to assist in managing, avoiding at least most of the 10% PM costs.

For example, I fall into one distinct category. 

The answer is yes you can and I have done this as well to buy one of my fourplexes I did a cash out refinance on my acura to get part of the down payment capital.These funds are considered secured debt (backed by the pink slip on your car) so you can use them in a lending transaction.The key distinction with secured debt versus other debt or unsecured loans (backed by nothing but verbal/signature/ you/ etc) you can use them as permissible funds for down payment or closing costs while the later you cannot unless you season them in your account for 1-2 months minimum so it becomes a timing and planning issue (unsecured loan/debt).Also the other thing to consider is how this car loan will affect your debt to income or DTI.

There is a very distinct, yet immensely important, difference.I disclose the character component because honestly, it is a factor for me.   

The high-level concept is to treat the LLC as a separate and distinct legal entity. 

@Ellen MorrisonSome lenders may make a distinction between “closing costs” and “pre-paids.”Need to know how they define each.