Characterizing an LLC as equivalent to fee simple real estate can only be done with single member, single asset LLCs.However, in a drop and swap scenario, the LLC would dissolve and the assets be deeded to the individual members. 

However, here are some considerations:Permitting: Unpermitted structures are often a red flag for lenders because they may not meet local building codes or safety standards.

Candidate 1: pit bull is a liability for you, regardless of tenant's insurance; paying a year in advance is a red flag -  @Theresa Harris is right. 

Red flags are going up around me regarding this area. 

My flipping clients will often do that because the appraiser may not take it as a bedroom for financing purposes and buyers may see red flags if its an unpermitted bedroom.

Is this a red flag?

Spoke to attorneys, way to many red flags.  

Red flags?

RegardsGiles DalrympleIn my personal opinion there were lots of red flags with Lane Kawaoka deals.

The deal sounded too good to be true, and he was aggressively marketing the properties which immediately raised a flag for me.