I did have a under ground contractor not pay his rock bill to the tune of 500k and we got notified and we paid it directly.. 

However, if the property is sold while financed (there is a loan on it), a portion of the gains will be subject to UBIT. 

In theory, you have experienced people buying large value-add properties, bringing them up to snuff and then returning a good portion of the returns back to you in the form of dividends. 

Seller will owner finance the portion she can.To those who have been walking down this path, how are you funding these projects?

If you wanted to fund a portion of the down payment would you suggest a hard money lender, personal loan, etc.?

I sent you a direct message, and I'd like to connect and speak directly with you before responding to your post. 

The integration with Airbnb works seamlessly, and although it’s not directly connected to VRBO’s API, we rarely encounter issues.

I would try to portion that off as a separate loan that can be paid back quickly - you'd need to discuss your plan with the PML.

The risk of "piercing the veil" applies more to LLCs when personal and business finances are not properly separated, not necessarily to individual landlords renting a portion of their home.A more practical approach is ensuring you have a solid lease agreement, sufficient liability insurance (including an umbrella policy), and properly reporting rental income and deductions on your tax return (Schedule E).

The property is in a solid area where Neighborhood Scout puts it at the highest rating for appreciation, predicting 40% appreciation over the next 3 years, and we'd look to refi or do a HELOC in 3-5 years to realize that gain, and I'd probably buy them out with my portion at that time.