I look at a 12 month commitment with a rent of $5850 + a $5850 security deposit.

This can cause difficulties and delays in securing financing from lenders that don’t understand the issues involved, as well as problems obtaining licenses and permits from governmental entities that are unused to dealing with the series LLC structure.

Securing a sponsor can be challenging, especially when they have concerns about your capabilities to manage the property and keep it profitable.So, let me share a suggestion that might make a potential sponsor more comfortable:Offer to have them oversee the asset and property management aspects, including the control over cash flow.

And California also capped security deposit, thus literally robbing landlords by AB 468 that's faking human right issue.If there is class lawsuit, I want to be the first to jump on.But my question is, why landlords are so docile to this evil law? 

Lease should make tenant secure renter insurance.

If it’s a chattel filing with the state, the foreclosure would not affect the secured party’s interest… they could still repossess the equipment.

If you are purchasing an asset then you could cross collaterize both but if $ for non secured asset may be easier to look to sell the loan.

Focusing on securing funding, partnering with quality contractors, and sourcing off-market properties certainly seems to be a winning formula.By prioritizing the purchase price and understanding the needs of both your lenders and contractors, you’ve managed to create a sustainable and successful investment strategy.

Here’s a simplified breakdown:Lease Agreement: Since your buddy signed a 12-month lease in July '24, he is legally protected until the end of the lease term unless the lease has specific clauses allowing early termination under certain conditions.No New Lease Signed: Since no new lease was signed for the new home and no formal agreement was made, the original lease terms for the townhouse still apply.Landlord’s Request: If the landlord wants to break the lease or has changed their mind about the swap, they would typically need a valid reason, like a breach of lease terms, or might need to negotiate an agreement with your buddy (buy out)Legal Advice: Your buddy might consider consulting a local attorney or legal aid service for advice on his specific situation.

This may be the best time to secure a property, live in it (and less than 20% as a primary), then move or reassess the plan in a year after your mortgage implication is up.