The applicable section:Revolving Charge/Lines of CreditRevolving charge accounts and unsecured lines of credit are open-ended and should be treated as long-term debts and must be considered part of the borrower's recurring monthly debt obligations.

PRO'S-There is recurring traffic in the area every year, so there shouldn't be a problem filling vacancies.  

The break-even price is the purchase price where income (rent) equals recurring expenses (debt service, taxes, insurance, etc.).

Be aware though that the initial filing cost does not necessarily reflect the yearly recurring filing and maintenance cost.It is not unusual to set up an LLC outside of where you reside and then operate as a foreign entity there or elsewhere; you would have to then do the math to see if there is a cost benefit to such an approach when you factor in any local filing requirements and yearly fees that may be necessary based on the exact nature and classification of your activities by the state.So you sort of need both the insurance & LLC.

Right now I'm trying to get as educated as I can about things, and one of the recurring themes I notice in this forum is how people can get SCREWED if they dont cover their a$$ leagally.

UNLESS....it's a recurring payment system so that it debits the renter on the 1st of the month without their interaction.

Ideally they would choose a recurring automated payment but it is not necessary that they do so in these systems.

I do this so often that I created an online tool which enables me to instantly estimate a break-even price (where rent equals recurring expenses).

I'm a huge fan of asking the tenants to pay online with recurring payments.  

Roderick Carabott The best property managers should have a team on staff that handle the normal recurring issues (clogged drains, painting, basic electrical repairs, etc) instead of outsourcing.