Most banks won't lend when someone has an outstanding mortgage so would the owners be prevented from buying another house later because it still shows the zombie mortgage as a debt.Carolin,Based on all the ones I have done, most of the owners have been delinquent in their mortgage payments in excess of four years. 

It is true a manager will likely take around 20% but a good manager can save you money through effective preventative maintenance, and can gain revenue through better pricing, marketing on more channels + direct bookings, and more.  

Investors also appreciate lenders who understand the nuances of rental properties and provide fast, reliable service without unnecessary red tape.

I regularly call sellers on behalf of my buyer clients that I have preapproved and walk the seller through the rigor of my preapproval process to prevent this exact situation. 

But I do keep boundaries to prevent micro managing.

They are normal to think about, but these kind of questions are going to give you limited beliefs and prevent you from moving forward on a potentially great property.

I think any bad actors should absolutely be shamed and prevented from scamming people (not saying this happened here since we don’t know all sides).

Let's say someone was bungee jumping off a balcony railing and the railing broke and they fell, injuring themselves.They could sue the property (ownership LLC) because the railing was "not secure".They could sue the manager (management LLC) for not ensuring the railing was secure.They probably will sue both and let the court sort it out.I don't see how 1% ownership of one LLC to another prevents any of the above from happening.

If your lease doesn't explicitly address pest control responsibilities, it’s worth reviewing and considering adding a pest clause in the future to prevent disputes by adding every single pest.

Hey Liz,As a loan officer who has completed more than 2,200 loans in Minnesota, I can assure you that attorneys are completely unnecessary, and expensive in Residential Real Estate in MN.