Yes, there is insurance coverage to help mitigate that, but that does not give nearly the amount of protection that an LLC provides.

You are creating the recipe for disaster with this.You engage a tenant to rent with the disclosure that it's going to be in foreclosure and mitigate that with a lower market rent, and the possibility (not probability) of cash for keys from the lender when they foreclose?

.- If purchasing and/or improving a property, consult with your CPA on how to mitigate taxable events (for example, if you have to sell stock you own to fund the investment).There are many other questions that could be asked, but given that I do not know much about your situation, I am not sure if they would be relevant.

Mitigate your risk by surrounding yourself with people you know and trust.

I agree that it is impossible to offset every risk, and buying right mitigates a lot of risks.

However, the savings could be largely offset by the potential transfer tax of property deed, the loss of the use of the LLCs as liability mitigating ownership vehicles for you post-exchange, and  by the inconvenience and risk of having one reverse with one 180 day window.  

If the virus is true or not- she isn't going to be there long- all has to do with mitigating your losses/vacancy.

If we can mitigate that so that we make sure that we earn our 9%, then we would be willing to take a look at that deal knowing that our upside is worth the risk.With respect to SFR, you need to factor your time as an add on to the return.

He can also give you a realistic idea of how much.You can also take out insurance for fire damage, loss of rents etc on a temporary basis to again mitigate risk.

It's all in the due diligence, mitigating losses and collateral.