Hi @Jonathan Greene, There are many landlords who don't want the hassle or furnishing a place and dealing with the management or all of that turnover.

Do you suggest doing a HELOC to fund some or all of the house hack down payment/closing costs?

The situation will obviously resolve if another person moved in, but going forward, the security deposit stays on file until either someone else moves in, or all move out. 

Don't pierce the corporate Veil: This can occur if the entity either is poorly capitalized.Inadequate Initial funding of the entityor fails to maintain a separate identity from its owners ( using the business bank account for business purchases, maintaining separate books)Conversion of entities Assets for Personal Benefit:Another factor that poses a risk of piercing the corporate veil is the draining of entities assets (such as payments of large salaries to shareholder-employees) that leaves the entity with inadequate resources to pay its debts.Do not commingle personal and LLC assets.Maintain a separate LLC bank account.Execute an operating agreement.Follow the provisions of an operating agreement.Have LLC member meetings according to the operating agreement.Title property in the name of the LLC.Maintain insurance on LLC property in the LLC's name.Sign all LLC documents in the LLC's name, not the members' names.Although Single member LLC are more prone to failing the separation test, these steps will also provide a better defense against other creditors attempting to prove to pierce the LLC veil.SMLLC does not file its own tax return, meaning it is disregarded for the tax purpose, so you will still report the rental activity at Schedule C of 1040. 

Also, I wanted to follow up on @Wade Wisner suggestion and throw in Virginia Beach, or all of Hampton Roads, to look into as it is a market with a huge military presence. 

Do the parents have preferences as to payment of capital gains if you were to do a sale (sounds like most or all could be shielded)? 

You might make up most or all of that negative cash flow with an MTR.

Now that I'm noticing that the issue of filter changes isn't addressed in the contract I'm feeling less certain that her use of an alternate, albeit inadequate, filter would be sufficient to charge her for the bill... but I also don't like setting a precedent that she doesn't have to handle the house responsibly... 

I recommend reading it here.Worth noting that this is something Gail has already done, she was asking for her younger friends.I had my own response, which you can see here.But over coffee this morning I found I was still thinking about her post, and the answers to her question, which I thought were inadequate across the board.

(B)Application by mail, telephone, computer, or other similar meansIf a consumer described in subparagraph (C) applies for employment by mail, telephone, computer, or other similar means, at any time before a consumer report is procured or caused to be procured in connection with that application—(i)the person who procures the consumer report on the consumer for employment purposes shall provide to the consumer, by oral, written, or electronic means, notice that a consumer report may be obtained for employment purposes, and a summary of the consumer’s rights under section 1681m(a)(3) 1 of this title; and(ii)the consumer shall have consented, orally, in writing, or electronically to the procurement of the report by that person.