Converting your single-family home into a rental property involves several considerations to protect yourself and ensure smooth operations: Establish an LLC:Liability Protection: Holding the rental property in an LLC can protect your personal assets from potential lawsuits related to the property.Tax Benefits: An LLC can offer tax advantages, such as pass-through taxation, where rental income is taxed at your individual income tax rate.Insurance:Landlord Insurance: Ensures coverage for property damage, liability claims, and loss of rental income.Umbrella Policy: Provides additional liability coverage beyond your landlord insurance, offering extra protection.Deductions:Mortgage Interest and Property Taxes: Continue to deduct these expenses.Depreciation: Depreciate the cost of the property over 27.5 years, excluding the land value.Maintenance and Repairs: Deduct costs related to maintaining the property.Property Management Fees: Deduct fees paid to the property manager.Filing Taxes:Schedule E: Report rental income and expenses on Schedule E of your tax return.Separate Accounts: Maintain separate bank accounts for rental income and expenses to simplify bookkeeping.Lease Agreement:Solid Lease Terms: Ensure your lease agreement is thorough, covering rent amount, due date, late fees, maintenance responsibilities, and eviction terms.Legal Review: Have the lease agreement reviewed by a real estate attorney to ensure compliance with local laws.Tenant Screening:Background Checks: Perform credit, criminal, and eviction history checks on prospective tenants.References: Contact previous landlords and employers for references.Property Management:Regular Inspections: Schedule regular property inspections to ensure it's being maintained properly.Maintenance Fund: Set aside a reserve fund for unexpected repairs and maintenance.Moving Out of State:Communication: Maintain open communication with your property manager.

.- Should I engage an attorney to prepare for lawsuit?

Even his former employees all left when they found out about his shady practices and if you google him online and search for all the lawsuits against him its insane hes not in prison yet! 

@Patrick Braswell I only had limited real estate experience (actually bad real estate experience, two apartment buildings lost in a lawsuit with the other partner and a SFH that got destroyed by tenants causing me to give up for 24 years).

What happens when the actions of one owner, cause a lawsuit against the PMC and thereby ALL the owners (since they'll all own part of the PMC)?

Quote from @Chris Seveney: That was a quick 180 - sponsor most likely threatened lawsuit Curious what information was and was not inaccurate though and while someone Amy actually within their operating agreement there is typically still factual information that can be made publicnot most likley and the post is probably verbatim from the sponsor. 

If you fail to follow the rules, you may open your personal assets to a lawsuit.

@Rich Hill, for situations such as your's, I generally offer two years of taxes and no interest on a best price offer.You can combine multiple properties in one quiet title lawsuit as long as they had the same prior owner.Thanks for buying the book!

@MariaTeo with the new changes coming in Aug from the NAR lawsuits you should ask your managing broker how your state is outlining this.

@Arina Alexiuc the richer you become the more the target for lawsuits so need to take precautions