Imagine someone harassing your girlfriend, damaging your property, using or selling illicit drugs, dog biting you or your other tenants and creating a flea or noise issue, or any number of other potential issues.

The ability to create equity and cash flow without “finding” deals is beyond amazing even with the upfront cash challenges.

I am creating an llc with a couple friends as we go into this new endeavor.

Please discuss this special allegation with your Tax advisors.This post does not create a CPA-Client relationship.

Thanks Don, that is both enlightening, and created new questions as I have 2 potential deals that could be classified as commercial, both are airbnb portfolios, with one being 3 singe family units, and the other being a single site with multiple units (11 units,themed resort style).

First, should I create an LLC and purchase the property through that?

also did you create a business entity for this operation and how did you go about that? 

@Monica Juarez-Gonzales Adding to prior note that @Michael Plaks has created the best resources and content, bar none, to help investors understand how to approach Cost Seg.

Furnished Finder does make it tricky since you need separate profiles for each room, but platforms like Apartments.com or Airbnb might work better if you're aiming for full-house rentals or structured by-the-room arrangements.If you decide to rent to multiple individuals:Tenant Screening: Screen each tenant thoroughly to ensure they’re reliable and responsible.Clear Communication: Introduce potential tenants to one another Detailed Agreements: Use separate leases for each tenant and specify shared vs. private spaces, utilities, and maintenance responsibilities.House Rules: Create clear, written house rules to prevent misunderstandings.Inventory Tracking: Document everything in the home (furniture, appliances, etc.) to avoid disputes about damage or missing items.Also, market your property with its flexibility in mind—like proximity to hospitals for traveling nurses or universities for graduate students.

I appreciate your ready-fire-aim approach, @Brendan Duggan, but you’re likely creating loans that might only be saleable at a discount.