having been around this bizz for decades now on the private lending side I will tell you many to most private lenders started in the mom and pop rental bizz tire of it and switch to be the bank.. and right now wih rates up there return would be quite handsome .. but you do need to use caution..

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

So I'm guessing it might depend on your state laws and personal situation. and make sure you know of any sticky items that would eliminate the protection you get from the LLC.

That was before he had switched out of that room to the larger room. 

A FHA 203k Loan is where the purchase price and rehab costs are rolled into a single loan.Assuming you have a respectable FICO you can buy, with a FHA Loan (3-5% down, a 30 year amortization schedule, and a residential loan rate) AND because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC/ LLC taxed as an S Corp, or an S Corp.

Set up an LLC in the property’s state for liability protection, and consider a parent LLC if needed.

That being said, anything can happen, but if you run your numbers accordingly, make sure that your contractor is trusted and do all the other stuff you'll be a little more protected than the next person flipping that does not do this type of calculation. 

So, even a small negative like a $50 unpaid cell phone bill that goes to collections when you switch carriers tanks their score.

You feel you have to rebut my comment to bolster/protect your business that’s fine, but I would suggest you steer clear of exposing client financials unless your in the business of fighting legal suites rather than real estate. 

People will start to realize that a law designed to protect against criminal international money laundering captures more innocents than anything.