It can convert what would be a passive loss into a deduction against active incomeYou can do this all under your personal return w/out the LLC, but your losses will be limited even if you do a Cost Seg due to your AGI limitations."

The other day they rehung a cabinet upside down and with drywall that was one inch back from the rest of the wall.

However, over the last 20 years there have been some favorable plms and rev rulings (particularly surrounding trusts) that owning a membership in an entity and converting that to tic still equated to the same level of ownership. 

If you did not and it’s unsecured debt you could be out of luck on some or all of the money as depending on his situation unsecured creditors in a bk may receive pennies on the dollar depending on what he can afford and if converted to a ch 7 you would get wiped out.Even in 2nd position he could argue the property is underwater and wipe out your lien.

I converted my short-term rental to a long-term this year.

We're not in Dallas, but we converted our STRs into midterm rentals years ago in Denver and Colorado Springs.

@Krysten Zarembskihi and welcome. i have an LTR that i hope to convert to an MTR in a few years. 

And I may only start getting enough traffic to convert in about 6 to 9 months, that is  IF I am good at learning the SEO and implement it as I should.

You should have no problem converting that basement into a legal unit as long as all codes are met.

And at the end of raising the funds it would be converted t US dollar anyway, the benefit to raising funds through crypto would be international but the US money laundering laws and KYC is conflicting with that therefore adding more cost but also a great idea.