Our investment to value (ITV) in the notes we purchase is usually in the 50-60% range, a significant amount of equity to protect our position and our private capital position. 

If I was the buyer's broker, I would have checked myself to protect my client.If they had, then they would have found out it was not a three family.

You’d need a clear exit plan and enforceable lease terms to protect your investment.Think about the following:Tenant Risk – Can they truly recover financially, or will you face another eviction situation?

A refinance into an LLC avoids this risk but typically requires a commercial loan with higher rates and stricter terms.If asset protection is the main goal, umbrella insurance may suffice without disrupting financing.

As a starting point: -If they work full time and make $700k a year -Don't want to or can't spend time self managing a short-term rental -Don't have a spouse who wants to take the lead on managing the rentals They are likely not going to directly reduce their taxable income with real estate year-to-year. 

They acted quickly and in your best interest to protect the property and your tenant. $2,000 is about the going rate in my market.2.

Some of you may find this information helpful if you have assets that you want to protect from creditors and liabilities. 

Remodeling costs increase the property’s basis, while post-rental repairs are deductible expenses in the year incurred.An LLC isn’t necessary for a single rental but can provide liability protection as your portfolio grows.

An LLC is useful for two things: anonymity and legal protection.

She works part time because it's a good balance of her interests, and protection for the family.