Make sure it's one that's also insured.

Deductions like mortgage interest, property taxes, insurance, repairs, and depreciation will help offset taxable rental income.This post does not create a CPA-Client relationship.

Plus I didn't include the Taxes and insurance for an ADU.IMO, it makes sense if you have the right sized property and a willing to think long-term.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Consider getting a statement signed by all parties which states that everyone has agreed to terminate the current lease early on X date and all obligations by all parties have been paid in full and that the deposit will be kept by the landlord and will be applied to the new lease. 

@Jessica Seppo,Many people take the cost of an LLC and funnel it towards more insurance and an umbrella policy.

It’s time to look into home owners/rental insurance.

Plus with no state income tax, cheap insurance, and very low property taxes, I’m probably starting $20k ahead of most people, and that’s a tax free $20k.).

Not once has one member ever said the LLC saved them when insurance wouldn’t have. 

That's easy compared to trying to fight and erroneous $13k water bill (a real issue we had) or an insurance policy tripling (that too).