Handle this promptly to protect the owner’s interests.

It’s cash flowing about $50/month after everything (PITI, flood insurance, home warranty, excess liability & termite protection) - if I got ride of termite it would cash flow $125.

Some of course may walk and not do anything to protect their homes.

To protect this community, they are selective about the people bring in because we all want connect with people who are motivated, committed to the process, and excited about being part of a real estate investing community.

They found they had to do that in order to protect their properties from animal damage.

The bottom line is this: Concealment is not asset protection, proper (time consuming and expensive, I know) management, and good, prudent, practices (ditto), WHICH ARE ADHERED TO, and insurance (expensive), are needed for asset protection.

Figure out ways to enforce rules to protect yourself and the other renters.

Private placements have no investor protections, audits, and public disclosures...they are the wild west of investing. 

Whie DOS lender risk may or may not be high, being ininsured is... well, enjoy your 'asset protection'.

Ask any asset protection attorney, and they will recommend WY, NV or DE as best states to use.