Does RK have any liability regarding this house if the buyer fails to pay? 

Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

IF so, have him put his suggestion in writing so that you are covered in the event of any mishaps of liability.

I have never put in a claim and have been self insuring in this way for 10 years so I have more than made up the $20,000 reserve that I would need.In doing this, I'm really just protecting against major fire that would be a complete rebuild.I also recommend an umbrella policy, especially if your networth is above your liability limit.  

Such an arrangement could be modest, ranging from 1% to 5% for the seller, and would only come into effect in the future upon the sale of the property.Sellers will likely have concerns regarding the assumption of liability.

My mom has established new lease terms with a 5 year lease agreement with the Company in an effort to protect herself against the possible liability that would come from having to remove the blades, and required a huge insurance policy to protect her against this too. 

Thanks to the Cost Segregation Study, the property investors were able to reclassify the property into shorter useful life categories resulting in first year depreciation of $203,600.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

If you have an entity with an EIN, and that entity either owns the property (named on title) or constructively owns the rental, then use that.Otherwise, then SSN.Ultimately this has very little effect on the tax return, liability, etc.

Hello,We recently purchased a rental property and created a domestic limited liability LLC (two members - my spouse and I).

The biggest advantage of an LLC for a vacation rental is personal liability protection.