There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

In all the other states where this is legal there is no state or fed reporting or oversight.. thats the point..

They will issue an IRS Form 1099 in January, reporting your total taxable income to you and the IRS.

Inspection reports and appraisals are helpful but aren't a cure-all.

One man reported successfully receiving a refund within 90 days.

I download reports to present to my clients during property walkthroughs, which is why I opt for the paid version.

Happy to report I took back possession with well over $140K in equity.Thanks for shedding light on the creative side of real estate.  

Nonetheless, I am not out to impugn anyone's intentions and I do understand (as Jay rightfully points out) that the self-employed (my situation for the past 20 years) especially run into times in their lives when conventional lending sources are of no use due to limited reportable income and other factors (such as when, for example, you retire in your 50's and begin to live off of your lines of credit, etc.). 

It didnt affect the loan because of the divorce decree, but it completely wrecked the borrower's credit score - dropped it 130 points from high 700s to mid 600s- because the mortgage still reports on his credit report and was showing as a mortgage late. 

When you have multiple responsible adults sharing a house, if one "bad egg" slips in then you have the others renters to kick them out or report them.