Proper documentation and consistent reporting are crucial to ensure compliance with IRS requirements.

We are reporting your false claim to Bigger Pockets based on not being able to substantiate your claim. 

My realtor found the city building inspection report which details that the unit needs to be de converted as it cannot be brought up to code.

Owner financing makes sense when you have their credit report in hand.

The plumber’s report indicates that the leak may have been caused by an overflowing tub or sink upstairs, but the tenant in that bedroom denies any such incident.As a result, I now have substantial expenses for the plumber and restoration company, including drywall repairs, painting, texturing, and reinstalling electricals.

.), and you've made your House Rules clear, then don't sweat the small stuff.By that, I mean- you'll have guests who have 5-star ratings but can still leave a mess or damage (other owners didn't report accurately or it was complicated) but you have recourse via photo evidence (your cleaners, etc.) to ask for reimbursement (or use something like AirCover, etc.).

I wouldn't recommend setting up an LLC out of state if you are buying in Tennessee unless your tax advisor is looking to help you on strategy.. but from a numbers standpoint, it really doesn't make sense when you start adding up on all of the annual LLC reporting fees from different states and then it starts cutting into your cashflow.

And we rarely need to use them.Tenants sign and initial each page of the condition report at signing, we quickly go through the property and let them take as long as they want.Ideally at move out they would sign the condition report, but this is nor normally done. 

Quote from @Brandon Croucier: I’d be looking to get into a DSCR loan.These loans are qualified by the properties income rather than your income, can close in an LLC, and also do not report on your credit report! 

Beneficial Ownership Information Reporting (BOIR)Have you heard about this?