If a claim against the LLC is successful, the LLC would have to first pay the claim, then sue the previous owner to recover its loss.However, if the LLC did something to cloud title, then subsequently transfers title with a warranty deed, the LLC is self-insured and has no recourse against the previous owner.In states that allow endorsement, the cost is nominal.

Good luck ... during my audit they actually disallowed a valid rental of office space by one of my LLC's from the other LLC that also had the rest of the commercial building leased.The 'Office space' was legit with pics etc & the rent was a nominal $380/month.

I offered to pay for the second appraisal and nominated two others with professional licenses nearby.~$70k improvement :grin:  

At least if I charge a nominal fee, I can cover my time somewhat.

I know there will be a cost but with the right rental company the coast is nominal  (my opinion).   

And they will require that your entire project cost with acquisition and repairs is no more than 70% or 75% of the exit sale price. at first, the interest payments would be pretty nominal, and then they get higher as you draw more from your loan. personally, I love using hard money, and what I would also consider is using gap funding where you would borrow the funds for the down payment on the loan, as well as the estimated interest payments so that basically you have no money down investment, but you’re still using your own money to secure the loan but you’re giving yourself some additional cushion and offering a 10% APR interest on the amount required so in like $100,000 property if you needed $20,000 they would get $2000 for lending the money over the course of a year(166$/ month interest) for and probably give them 1-3 points for giving you the gap funds for the project.

The extra $35 bucks I spend on that is nominal, but it makes a huge difference to the guest.

I know I’ll pay tax eventually if I sell and don’t 1031 but would that be at a nominal tax % or does that cap gains tax follow me. 

They have no resources to fight on your behalf for the nominal "audit insurance" fee that they charge.

For this reason the HOAs that have nominal feels and only provide minimal services light street lights and lawncare tend to be less rigid about how every property is used.