I can't imagine booking a vacation and then finding out where you want to stay is a sham and you are left high and dry.

There is a sham going on, I'll guess at this just knowing what some gurus try to devise.

I've also seen where later the parent to child deed transfer is reversed and the property goes back to the parent.I think its a shame that some times people shot themselves in the fot with out even knowing it, sometimes for years.

However, the mother and sister of this deadbeat (also my tenants) felt so ashamed about the way the deadbeat left the property, they spent all afternoon removing the trash and cleaning the place.

It's a shame that the people who truly need temporary help don't get it, while others take advantage of the system for many years, even those someone mentioned getting paid cash under the rug.

I told him he ought to be ashamed of himself for any and everybody that he has scammed doing this.

However, that technique raises several red flags in my mind:If the LLC exists solely to hold the primary residence, and has no real business purpose, I'm concerned that the IRS would rule that it's a "sham", and any tax deductions would be disallowed.Most likely due to violating the Economic Substance and Substance Over Form doctrines.If the LLC has some additional (real) business purpose (e.g. additional rental properties, or a commercial venture...such as selling office supplies), then the personal residence is in jeopardy in the case of a lawsuit brought against the LLC resulting from any investment or business property held within the LLC (e.g. slip and fall at a rental property).Even in that case, I'm assuming the residence would still be classified as personal property (even if held within the "business" LLC), so that any expenses paid (maintenance, repairs, etc) would not be deductible.Not to mention that mixing personal and business assets within the LLC creates additional risk for "piercing the veil" (alter ego) for any potential judgments.If they decided to proceed and ignore the above issues associated with using an LLC, there are additional issues:It's more difficult to get financing for personal property held in an LLC, and any financing would be at a higher interest rate.It's more difficult to get hazard insurance.They would need to pay the LLC (themselves) fair market rent, as tenants of the residence.They (as LLC members) would need to pay income & FICA taxes on the income (rent) received from themselves as tenants (resulting in double taxation of that money).They might lose their capital gains exclusion:If they keep it as a Single Member LLC (since they're husband & wife in a community property state), they could probably keep the capital gains exclusion, since the IRS typically considers that a "disregarded entity" (as long as the LLC has not elected to be treated as a corporation for tax purposes).

It's a shame because the town is one of the better ones, and the location would make for a decent rental, but I'm struggling to find any way to justify the price of the note.

This landlord should be ashamed!

It was a shame.