I think it is important to weigh the risk factors from a legal perspective AND the tax ramifications from a financial perspective before making a decision.Are the overhead benefits from a tax perspective outweighing the potential loss from a lawsuit?

However, the returns can outweigh the hassles.

You are buying the property way under market value and immediately step into equity that outweighs the negative cash flow (although this is a short term strategy as negative cash flow and all of the headaches that come with it gets old real quick!).

Unfortunately for us the HOA has restricted any new rentals until July 1st and possibly longer even though the governor of Florida set a date of STR restrictions until only May 4th.There are some advantages but the disadvantages tend to out weigh them! 

If you are just beginning with real estate investing, the formation cost and the maintenance cost of the entity or the entities may outweigh the benefits that you are receiving from the protection that the entity or entities provides.

@Alex BrownMaking an offer on a house that gets accepted can be challenging in a competitive market when demand for homes outweighs supply.Getting preapproved for a mortgage can help to strengthen your offer and signal to sellers that you're serious about buying.A trusted real estate agent can draft and submit your offer on your behalf and negotiate the details with the seller's agent.When making an offer on a home, it's important to keep your budget firmly in sight to avoid paying more for a house than you can realistically afford.All the best!

I find the cons to far outweigh the pros IMHO.

This will outweigh the cost of transferring to an LLC which he could do via quitclaim for a couple hundred dollars.On a conventional loan, you can transfer ownership to an LLC you control.https://servicing-guide.fanniemae.com/THE-SERVICING-GUIDE/Part-D-Providing-Solutions-to-a-Borrower/Subpart-D1-Assisting-the-Borrower-with-Property-Related/Chapter-D1-4-Transfers-of-Ownership/Section-D1-4-1-Information-Relating-to-Transfers-of-Owner/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer/1039972691/What-is-an-exempt-transfer-of-ownership.htm?

I would happily pay more for higher quality management; the small amount extra paid per month far outweighs the cost and hassle of poor management.

So by their standards they were profiting 90 million.It wasn't until the fines were raised so high that most didn't even think about doing it as perceived gain was outweighed by the risk.I believe most honest people would not want to violate laws for financial gain.