Also, it's hard for folks to put assets and liabilities side by side, because for some, they have a negative net worth - and facing that fact in black and white is not fun. 

As mentioned above, you could go for STR loophole and try to offset your tax liability with deprecation created via cost segragation 

Am I unknowingly taking on extra liability by providing a security system?

My goal is to create a scalable entity structure that balances general risk and tax liabilities. 

Rent Roll13. property survey14. prelim title report (your broker can help with that)I DO NOT Ask or recommend my clients ask for tax returns, credit reports, bank statements - These fall into financial privacy protections and if my buyer walks from the deal, there is too much liability & risk with having that information if were to be leaked.If a third party management company has been managing it, you'll get basic information (income/expense, rent roll & leases, maintenance records, capex (maybe if they oversaw)).Owner operated properties will have less of this information as most mom/pop operators don't keep good records, in my experience.Don't worry about all this BEFORE the offer. 

You’d think of all the bought off suits they would propose a bill for Airbnbs liability as an “umbrella” STR license and hosts would have an apportioned amount withheld through individual earnings to operate under that license. 

Rental bought in 2023 and initial return.For assets - Cash, depreciable assets less accum deprn, landFor liabilities - Open credit card balances (Charged rental improvements and expenses on 0% interest credit card)Partnership equity - Cash contributions less net lossMy assets are greater than liabilities + partnership equity

Liability claims typically arise as a result of property damage, human injury, or human death.

Based on the information that you have given, the loan application would be in your name since you seem to be the only one employed and use the rental income (75% of rent) to fully qualify you using your employment income, rental income versus your liabilities.

All it does is postpone your tax liability, yes you can 1031 but that's just another delay tactic until death.