In @John Underwood's defense, he is giving advice based on their experience in STR, which is zero.

And the fact that it isn't suggests to me that they may just be moving on to legal defense instead of closing this loan.And that is the kind of nonsense and ridiculousness that we investors have to deal with as we work with all these lenders.

But in my defense, the numbers made sense to me. 

Your fact pattern doesn't make sense but, regardless, you could lose any defenses you have if you sit on them.

In this book, your first line of defense is insurance however in case something went wrong and your case falls into the insurance company's own loophole denying payment you got the second line of defense... your LLC or LP.It also talks about a state's homestead and debt(specifically line of credit) for asset protection... the goal of the set up is to deter litigation, if litigation happens and they win you'll of course be held liable.I'm not a lawyer read the books.. :)

The nice thing about liability protection is that they also pay all defense costs associated with a claim against you.

Inheriting tenants is not up there on my wish list.Never let the seller talk you into keeping someone on, it may be more to their advantage than yours.Seems you have inherited a nightmare tenant.Couple of things are outright concerning here:1.I never allow tenants to change locks and I will always have a copy of the key to be able to get into the unit as needed.I do however work to provide notice when feasible, not always possible in the event of an emergency but this is also detailed in the lease agreement;2.The mold defense is one if not careful tenants will try to use against you.Closing on a house where the existing tenant (that we are inheriting……yes, I know, I know, I had to keep one to avoid double vacancies) reported mold.I insisted that we do a test before closing as I did not want to take on that liability.No mold found and we have the professional report from mold testing lab and inspector;3.Prior evictions?

My defense when they say pension is I have amortization on my mortgages, along with up front monthly rental income.

Offense (making money) and defense (saving money) build wealth. 

The extra protection generally carries a cost so the defense you play isn't free.