@Jordan Sachs This is 100% a state law issue... developed through court cases over time.

This way it’s no up front out of pocket expense for me and they then have the extra money to spend as they need it.

I'm going to use this.

In my experience, you are thinking through this correctly.I've heard lawyers say, if the loan is in your name (which it has to be for conventional) and the deed is in the LLC, you aren't treating the business as an independent entity and in a severe lawsuit, the corporate veil is pierced and the LLC can be thrown out.I agree that one of the best defenses is to run your properties well. 

I own a STR/MTR management company here in Los Angeles, so if you have questions about this market, please ask =)

I'm looking into purchasing a rental property in the Belmont area of Dayton, OH and wanted to get any insight for this market as it seems concerning that the average rent is higher compared to the actual costs of houses in the area.

I'd suggest checking in with some social service organizations within a few miles of the property to see if they work with people/populations in the area looking for this type of house.

However, it’s important to ensure the area is safe. in those areas I would recommend checking local crime statistics on SpotCrime. you can use this link for an example,to get detailed information: https://spotcrime.com/map?

This makes a lot of sense thank you for the insight.

I think this is one of the riskiest strategies.