Several things to consider: 1) One of the main purposes of segmenting your assets into separate LLC's is so that your personal net worth or equity in other business ventures or properties isn't exposed, so unless you have a high net worth or a lot of equity in a property, it might not be worth bothering going the separate LLC route, especially when it restricts your financing of the property.  2) Most any commercial financing you get from a local bank for a small property is going to have recourse anyhow and require that you sign a personal guarantee, so you're still personally on the hook to the bank even in the case of a commercial loan.  3) If you're a newer investor and buying a deal that's tight on cash flow, or if you don't have a ton of cash sitting in the bank already, your greatest risk factor as an investor is your investment failing economically due to poor financing terms or not operating the investment properly, not because you get sued. 

I'd be letting my tenant know that their goverment is failing them.

Construction i completely understand it runs in my family. money is not a issue for me is getting the proper knowledge in this field so I do not fail.

I fail regularly but I have become more used to the fact that failing is a necessary part of success.

There is near-zero value add.Your manager failed you because they didn't care to understand the problem or to follow up on the *right* solution.

I have already generated pre-forclosure lists, failed listings, free and clear, distressed property, and motivated seller lists.

You'll potentially increase your stress, fail to replace your lost income, and possibly lose part or all of your investment property equity.Focus on replacing your job and stabilizing your finances.

@Laura Williams that is a great question and I failed to mention it.

Advertising a non-conforming unit without disclosing its illegal status could be considered deceptive (and fraudulent), opening the owner to major legal risks (fines or tenant lawsuits).Even private marketing, like word-of-mouth, doesn’t absolve the owner from liability if the unit fails to meet legal requirements.

At the risk of being proven wrong, I find it hard to believe that the Department of Homeland Security is involved in investing a failed real estate investment.