However, seasonal rental demand may be a concern.

But I'm concerned about the challenges of frequent turnover and vacancy rates.If anyone has experience with MTRs, I’d love to hear your insights!

I would be more concerned with the quality of tenant in place and payment history. 

Like you, I would be concerned about the liability.

The area is another good concern.  

I’ve heard your concerns, and BiggerPockets is stepping up to provide stronger support and more robust education to empower passive investors.That’s why we’re creating PassivePockets.This isn’t just another platform; it’s our commitment to bringing transparency, education, and a true community to the world of passive real estate investing.To make this a reality, we knew we needed more than just an idea—we needed a partner with deep expertise.

There are definitely pros and cons to each so I figured I would just lay out a few benefits and personal thoughts: Small banks/brokerages:Pros:- Some regional knowledge of the market- Possibility of more creative lending guidelines with bank specific programs- Sometimes they have competitive rates for their areaCons: - weak balance sheet (more strict on some guidelines, no wiggle room, inability to be flexible or grant exceptions because they cannot afford to hold less than perfect loans)- Can't scale with clients to different markets- Usually limits exposure to individual investors (they don't want one investor to be too big of a portion of their balance sheet)- Lack of experience with multiple solutions (tend to have 2 or 3 loan products they sell and are too niche to provide tailored solutions)Large banks/brokerages:Pros:- Large compliance departments that understand individual market guidelines (typically each state has specific lending guidelines that augment the national baseline)- Ability to scale into multiple markets with same lender (licensed in many states)- Impossible for individual investors to "outgrow" a large bank's balance sheet (not concerned with one investor's concentration)- More lending solutions available for different scenarios- Often comparable or better rates given the game is volume basedCons:- Can be more difficult to get fast responses if the bank/brokerage does not have good follow up systems in place (or if the underwriting/processing staff gets overwhelmed)- Bad large banks can feel less like a relationship and more like a cog in a factory (less personal)Overall, I have worked from both and worked with both as a loan officer, branch manager, and as an investor/client myself. 

I also came across the following article which reviews why LLC as a structure is not the way to go.http://www.moodysgartner.com/canadians-beware-united-states-limited-liability-companies-may-be-hazardous-to-your-tax-health/I also found the following to be informative.

If pre-payment penalties are a concern federal credit unions are not allowed to charge pre-payment penalties.

This would be very much like a borrower having the property rented at break even.So in short, a LO simply saying "he wouldn't finance" without running full credit and verifying income would be short sighted, in my opinion.July 3, 2022To Whom It May Concern,On November 14th, 2018 one of our holding LLCs, [LLC Name Redacted], entered into an agreement for sale on the property at [Address Redacted].