Not only did it cut his living expenses drastically (and the triplex appreciated $843K over those 10 years, not bad on a $20,000 down payment even though that was a fair amount of money back then), but one of his tenants eventually became a business partner on his next investment.

Moving it from your personal name to your LLC will be treated the same for tax purposes when selling, so I don’t see how moving it to an LLC will change your capital gains.

The disadvantage I can think of is that, the tenants will treat renting your house as renting an apartment, and require more maintains like clogged toilets.

The IRS treats single-member LLCs as disregarded entities, so owner’s draws aren’t taxed separately; instead, the LLC’s profits are reported on your personal return just as it was without the LLC.

Also, make sure your cleaning crew is trained on pet cleaning best-practices to avoid any issues for upcoming guests.Small touches like dog bowls or treats can really enhance the overall experience.

I would likely treat this like any other tenant who wants to break a lease.

Long term capital gain isn't bad. 

A bad borrower can ruin even a good deal.

This whole situation just confirms how bad this company is, and I can't wait to be done with them.Here’s my question: What should I do if they miss the 45-day deadline?

@Mark BrownGood bad news is you may be able to reduce your tax burden with the loss.