Umbrella insurance provides an additional layer of security to those who are at risk of being sued for damages.

I pay for utilities, wifi, and professional cleaning of the common areas once a month.In addition, I have another property I have listed on PadSplit.

The loan also contained a substitution of guarantee clause, as long as the substitute guarantor had a met a minimum credit score, which the builder/investor did.

Each note is a seperate series of the LLC, so it’s like its own individual LLC without the additional cost of LLC setup or legal fees or state fees.  

Thanks Michael, it's good to get that additional verification.

I wouldn't touch a 2 million dollar luxury home. the land cost at 400k is too much as a percentage of the after built value too. we try to underwrite 10% and normally try to buy land that has 5x multiple through zoning or entitlement for additional upside.

Additionally, once your tenants move into the rental, you will ask them to sign up for their own electricity plan.

He bought the home with no money down, Home town Heros program and creative finance, then we developed the property by improving it with electrical upgrade additional meters and more bedrooms.

If it is $50 a month, you'll obviously recoup that with additional rentals pretty easily.  

In addition, you do not need to report the sale of the business or rental part on Form 4797.