The lawyers handling the divorce and CPAs need to answer this.

However, for the strategy to be effective, clients must ensure that they meet all the IRS requirements, such as maintaining the short-term rental for a sufficiently long period and passing one of the material participation tests (e.g., 100+ hours of active participation).2.

And as the economy of those cities evolved and started going down, it had a domino effect on rest of the ecosystem. 

The Series name should include something to the effect of ", a series of [Parent LLC]". 

If you didn’t also find releases or cancelation of the mortgages in the same place you found the mtgs….then they are still in effect. 

When the time comes to evict our first tenant, I will hire the best lawyer and let the expert take care of it.

effectively, you'd either need to look for a lender that would let you use the other property as collateral (cross) so that you can avoid actually taking the cash-out (this is rare in terms of institutional DSCR lenders, but fairly common in the hard money or private money space)...

The number 1 thing would be to have a lawyer look over the terms and contract to protect you in case something changes for them through the course of the owner financing.

Well they wont know it and to save money by not having a lawyer advise them .. boom they take title to all sorts of nasty crap.

To their credit they're being pretty transparent about how this went down and they say they've hired a lawyer to take action against the inspection company they hired.