You probably won't get reimbursed for the improvements you will need to make to get them ready to lease, so if you improve them enough to get them leased you add risk.   

We have found that dishwashers often leak or don't clean well, fridges have bad motors and don't cool for very long before they break (and then you have to reimburse the Tenant for their spoiled food), and washing machines work, but don't spin. 

The fact is you cannot avail extensive Fringe Benefits with a LLC by giving yourself Health Insurance premium reimbursements, etc. as they will NOT be 'Tax-favorable' while it is for a S-Corp.

The day this all happened, I told him that if he chose to cancel and we were able to fill any of the nights during his booking window we would reimburse him for those nights.

An addendum was made to reimburse the repairs I paid for since the seller did not have the cash to pay to get the cleared 4 point inspection.And the appraisal came back at $136,000….the appraiser stated that the house was filed at the court house as a single family home and paying taxes as such, therefore, the two efficiency attachments were not allowed to be included into the value of the home since they are additions made recently.

If you don't make that election, it will default to disregarded entity for single member LLC and partnership for multi member LLC.as @Frank Chin wrote, usually the purpose of a management structure is to maximize fringe benefits (like reimbursement of health expense, contribution to retirement accounts, etc...) and to maximize pre-tax deductible expenses.

The refinance reimburses the 150k to whomever put it in.

Notice that the reduction includes BOTH the deductible tax loss of $10k AND the $40k insurance reimbursement.

On my call with Spartan this week Maureen (VP Sales) said they charge no management fee after 90 days and reimburse your mortgage beginning at 120 days.

It is worlds different than residential ,multifamily, etc.On the insurance it generally is written in the lease that an STNL landlord will have an insurance policy that the tenant reimburses for and additionally the tenant will have their own liability policy naming the landlord and lender as additional insured.