Now we have all sorts of fake lenders trolling SM sites promising the moon telling folks what they want to hear and scamming them out of small and Big dollars some of these folks lose 10s of thousands to these folks.. with the  line  " Hey its going to fund next week just need another 5k for some BS item"

So glad I didn't lose her bc honestly she has been a great tenant for past 3 years.

If it breaks when someone is in there, what is the rental income you would lose and how long would it take?

You can still lose your investment in the LLC.

“Is there a possibility that I will lose my entire investment?”

The interest actually goes back to me so it’s essentially just an opportunity costs question about losing $50k of retirement investments with effectively 0% interest. 

Basically they are a type of insurance and insurance companies make HUGE profits because they pay out MUCH LESS than they take in meaning that over the long term you will lose money with them.

This becomes a normal LTR deal then, and you lose the advantage of STR (2-3X monthly income for you).

. $4k would be losing money for me but again it sounds like a lower cost of living area.   

Bankruptcy saves the lenders from losing even more money during a prolonged foreclosure.