I'll try and pick out a few items I'd recommend you consider, and I'll give you some assumptions I have.My assumptions: a) you are buying in the Costa Mesa area of California, b) you are using all-cash to buy the hope, presumably because you feel it is safer, c) you are buying a single family home (might answers below might change a bit for a condo).So...It sounds like you are looking for some ratio or variable that describes liquidity.

It could also be that her velocity of burn in attacking the maintenance backlog is exceeding the rate of cash flow ... and the property has not accumulated the necessary reserves {presumable due to the mentioned mismanagement}.   

> Tax Lien $45K -- I presume this will be settled upon close of escrow of his P-Residence, but will verify  > No Car Loans  > He has a couple credit cards that have zero balance, no issues since 2012According to them, they fell victim to the housing market crash and had 2 investment properties go upside down and could not find renters.

I really get that having a dog damage the property is not the optimal outcome AND I want to say HOLD ON THERE just a second to the landlords so quickly pulling the trigger to have this dog abandoned, presumably into the system of shelters that end up putting them down.I agree, the tenant is responsible for the cost of repairs AND your time to make the repairs.

If you are house hacking, I presume you are not independently wealthy and a hot target for ambulance chasers.If you want the best mortgage, you'll want a Fannie Mae loan, not available to LLCs.If you were hoping to cut back on insurance, why not consider getting good insurance instead of an LLC?

If you expect appreciation and the cash flow from the house is sufficient to pay the mortgage AND pay your monthly bills you may want to keep if PRESUMING you have no other assets or cash flow. 

.), but continued with it as I presumed (poorly based on experience) that the builder would follow through.

You also, presumably, are not a CPA.

Nobody can logically presume that just throwing money at the problems people in poverty face will have any kind of long term impact.  

Let's presume he is still idealistic and doesn't see your lease as an opportunity to test his skills, then A with an additional deposit to offset the income risk.B's dogs are a problem, but the risk of abandonment (they reconcile) or drama (his wages are garnished for support) offset the stated income.