Ryan- I am currently operating my LLC as follows:All income gets deposited into the LLC checking accountAll business expenses get paid out of that same checking account (online bill pay)Since it is a credit union, I can create sub accounts ("share"accounts- individually numbered savings accts) under the main accountAt the beginning of the month, I online transfer set amounts out of the chkng acct into the "tax", "insurance","heat/misc" share sub accountsSince chkng accts are vulnerable to outside influence (counterfeit check, invalid ACH withdraws), I sweep excess funds into a separate share acct I do an ACH transfer of my monthly draw into my personal chkng acctThruout the month, i'll reverse sweep funds back into the main chkng acct for bill paying as needed.When the "funds sweep" holding acct gets too large, I transfer funds out of the LLC into a personal savings acct (the thought here is that my rental activities are far more susceptible to a lawsuit than my personal life.

Mother in Law Suite Garage conversion as well.

Even if it doesn't go all the way to lawsuit, massive headaches can arise and make you wish you hadn't done it for X dollars.

It's makes no sense.It seems that the party responsible in the eyes of the law is the party with the deepest pockets.It reminds me of the slip-n-fall lawsuits that really demonstrate this.

You have to be able to prove that a crime took place.Civil lawsuits have a lower burden of proof.

LLC's are used to reduce risk overall, such as a lawsuit from from a specific property, but all you need is to get a million dollar umbrella policy in case you endure issues and you are sued.

What I was far less certain of were pending lawsuits (if any) and other matters that could affect me. 

Below is the counterclaim that was filed in his lawsuit he filed against me:https://www.dropbox.com/s/b7s9...O forgot about the article he linked to his post.

-The risk of a lawsuit or liability incident goes up with so many people coming through the door every month.

Fannie/Freddie want to see experience in the field, a reasonable budget (we can help with that) and no red flag issues (bankruptcies, history of willful neglect, lawsuits centered around mismanagement of funds, etc.. a slip and fall suit is deemed as general business risk and not held against you).