This is to protect yourself so that if a second offense occurs you can automatically move to evict should you choose to.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

The property damage protection is appealing and the 4% monthly isn’t bad.

@Thomas Richardson As @Mike Grudzien mentioned, reading my book doesn't exactly tell you how to "pitch" to private lenders but it does help you understand how to present deals to novice or new PMLs within your network by being able to show them how you'd protect and safeguard their capital with things like equity protection, title insurance policy, loss payee on your property insurance policy, going through a third party title and escrow or attorney to close the loan, etc.

Smoking is not a protected class.   

If anything happens to them there is no protection for you. 

Title insurance is meant to protect you from such issues, and it seems the title company may have failed in their due diligence by not rechecking the tax records closer to the closing date.

Leasing a LTR is classified as passive despite the occasional needs to actively protect the asset.In Ocean City, NJ there was a little store that had stores within it.

An LLC is for protection but there's a lot of things to follow in order to protect you and each property from a lawsuit against any of the properties.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.