@Nina Erlandson Personally, I have not heard of Obie Insurance.

It may seem syndications do not earn till they exit.

Quote from @Jeffrey Duck: I see no reason to pay an attorney for this, but it's your dime.The current lease was between you and Person B.

Then they receive the money and you still keep your money and earn money on it.

I also use their virtual credit cards which enables me to assign a card to a specific person, like the cleaner for my STR for example, so when she runs a charge, it automatically drops into the right account in terms of categorizing my expenses.

Matt that is the NMLS number for the company not for you personally  sounds like your a VA or something not a licensed lender..

If the IRS has a Form 1098, they assume that the person listed on the form made the payments, and they move on. 

To Sum it up, its a good idea if you can exceed the cost of capital (higher rate than your cost of debt) with what you earn on your heloc/debt you pull out and invest.The question is how much gains above is enough to substantiate the risk of your variable interest rate, well thats up to your personal investing criteria.

Recapture typically happens only when you sell the property.If you use the property partly for personal use and partly as a rental in a given year, depreciation and other expenses must be prorated based on the number of days it was rented versus personal useBased on the current tax laws and regulations, once you've taken bonus depreciation on an asset, you cannot "capture" additional bonus depreciation on that same asset in future years, even if the rates increase.In the 2024 tax year, the rate for bonus depreciation is 60%.

Just make sure that anything that earn for this settlement is not subject to tax and if it is - allocate properly.