Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

However, for the strategy to be effective, clients must ensure that they meet all the IRS requirements, such as maintaining the short-term rental for a sufficiently long period and passing one of the material participation tests (e.g., 100+ hours of active participation).2.

By incorporating additional collateral to secure financing, investors can enhance their security, ensuring that the asset pool remains sufficient to stay within the desired CLTV range.

Normally at minimum an appraisal is required to verify the remaining collateral is sufficient.

If you don't have the liquidity to purchase the property your other option is to finance the acquisition but how do you obtain financing when you can't even show sufficient down payment funds/liquidity on your PFS?

The lender assesses whether the rental income is sufficient to cover the loan payments.

I do have sufficient cash of our own in our bank accounts to show we could cover the mortgage for ~6 months if it was unrented.  

For multifamily investments, using the LLC name is typically sufficient for legal and banking purposes, as advised by your CPA and banker.A DBA may be useful if you want a separate brand or manage multiple properties under different names, but it’s not required for most investors.

In fact, AirDNA is so accurate that many lenders will now accept a AirDNA estimate (for non-declining markets) as evidence of sufficient qualifying income on many DSCR (Debt Service Coverage Ratio) loans and mortgages.

If you use the $14,000, will that leave you without sufficient reserves if the AirBnb thing doesn't pan out?