Look for experienced investors and coaches with a proven track record.

Obviously make sure you record liens against the property, try to get the borrower to personally guarantee the debt, charge points up front, get an appraisal. 

You can look into a cost seg study to accelerate some of this depreciation.Beyond the basic deductions, keeping a detailed record of shared expenses and understanding the split-use rules can maximize deductions.For house hacks, depreciation is typically taken on the rental portion only (50% in your case).

In my state, if you do that, your personal name and info aren't tied to the business records in any way. 

@Brody VeilleuxTo maximize returns on multifamily housing, focus on mid-grade updates, amenities, curb appeal, utilities, exploring additional units, creating flexible spaces, and refinancing with a value-add record.

Without a written record of this arrangement, is there a way to claim any compensation for those renovation costs, or would that be difficult to prove in court?

As long as you screen the tenants as best as you can to ensure they are the right fit for your property, you should have a great experience with them as well.

Unfortunately, appears you've gotten exactly what you deserved due to your poor screening.Hopefully, you've learned from this painful lesson.Hire a well-screened landlord-tenant attorney and evict them and sue for damages.

And as Rory points out, subsequent loans require less overall time and effort once you have a track record.

You should consult an attorney or CPA for your specific situation.ANONYMITY: When you create the LLC, your name is recorded on the documents and published on the Secretary of State's website for all to see.