By documenting everything, both parties have a clear record, which can be invaluable if any issues arise later.

It seems these inevitably run into problems as the investment projections are not met, loses begin to pile up, SEC compliance issues are ignored, and numerous legal actions are instituted against the sponsor.   

Soon afterwards a guy was trying to wholesale it on Facebook (not legal, btw.)

You can combine both sources in one document to strengthen your proof. 

Without an operating document, it's unlikely they could sue you unless it's in the city rules that all homes are responsible.

Hopefully, you've approved a bid they submitted, so the cost is fixed - unless they can document the need for acceptable change orders.If they are charging hourly, then, yes, they may be able to charge you more the longer it takes.Keep in mind, your PMC is unlikely to have an exterminator and other licensed contractors on staff.

Until now, I’ve mostly shared this journey with close friends and family, but I’ve realized it’s time to open up and document this experience for everyone.

An LLC creates a legal separation between you and the property, so if something goes wrong—like a lawsuit or debts related to the property—your personal savings, home, and other assets are shielded.

Again, have to be self employed to do this AND rates are higher on these loans.You will be able to add back your paper losses on your rental business by your lender using this form (if they are competent which not all when it comes to investment real estate) :  https://content.enactmi.com/documents/calculators/Form1038.C... 

Banks like to match short term assets with short term liabilities, and vice versa.I don't believe that DSCR loans are "expensive", but they do require a more thorough underwriting and higher amount of financial documentation other private and hard money loans.It generally helps to have a Fractional CFO or Loan Consultant (not a broker) that will work on your behalf to negotiate better DSCR terms and rates.