IMHO, treating your investors right and keeping your promises is the best way to avoid problems with an investor but it's a good feeling to know we're well covered in case things go bad.

@Craig Garrow containers are personal properties.. they should not be treated as property. 

However, I currently work & reside in LA and have done the math as well as talked to others it does not seem "smart" to invest in property around LA nor southern California for that matter, especially if I want to house hack It ruly have no desire to live within the property I purchase I want to treat it as a business more so than anything else. 

, but in my opinion you should treat investor funds no differently than you'd treat the bank's money.

You will treat the cash out of the LLc account as distribution to you.

I think you can document you did everything within reason - i.e. you had it professionally treated prior to move in, you had it professionally treated again when they complained of a problem, and you attempted to follow up professional treatment but tenant would not cooperate. 

I guess my first incorrect assumption was that this llc would be treated as a disregarded entity just as a single member llc was. 

For instance, an LLC can be treated as an S-corp or C-corp or disregarded (for tax purposes). 

There is no reason tenants must be treated differently than home owners.

I am a landlord also and cant imagine treating my tenants this way.