In all markets, basing these expenses as a percentage of rent is not logical. 

I understand your logic related to the property not being in the LLC, but it still serve a purpose.   

It's interesting what people will do in acts of desparation.In my experience, lenders (specifically private lenders) will do what they can to work with a borrower to avoid foreclosure, which is a costly endeavor for the lender and requires time to process, usually months and months, depending on your state.Also, while an LLC is often considered a safeguard to protect personal assets, a lender using an LLC for multiple loans may have a substantial value to their LLC, which could all be at risk.Finally, if the wrongful foreclosure suit is legitimate and based on an error by the lender themselves, an attorney could logically sue both the LLC and the individual.

If the rental situation doesn’t make sense, it’s more logical to sell and use as down payments for next properties if that’s your goal. 

This was something I always worried about until I saw you post on another thread using the same logic.

And to justify paying more in interest so you can write it off...that's flawed logic at every level.I love it when anyone can use their own primary home to house hack. 

@Nicholas L. it does sound like alot but our logic is this simple buy properties with as many tenants as possible so if you lose one or 2 its not a major loss to the over all cash flow. and the house flipping is just for lumps of cash and something to be active in while the multi tenant units properties are cashflowing.

Since I’d end up paying retail for the rehab myself because that’s not where my skillset is, my logic is my time is better spent elsewhere and the economies of scale I gain by using a large TK outfit essentially equate the the delta between any “deal” I may get on my own and the amount I’d end up spending as a small “mom-and-pop” investor to a contractor/crew.  

Sounds like government logic to me 🙄.  

SOOO many of you come here with mere opinion, and what they are telling you makes ZERO sense, so many of you are failing misserably at this... and NO ONE questions those opinions and everyone readily accepts them, votes for them and tries them...Then someone comes along with actual proof and logic, intelligence and common sense.. and HE gets the doubt, the skeptism, the resistance, the challenging remarks and the disbelieve.It is truly fascinating to me.People make decisions based on emotion, ego, stubbornness  and habit... not on facts, data, evidence, or intelligence.