It is a challenging market.Best wishesThis goes back to my prev. alignment that you invest differently in different market circumstance. 

It does not always make sense to have the note recorded on title as it can cause other complications down the road, but that also means much less protection for the lender so it really depends on the circumstances. 

In most circumstances, if hard money was used to purchase the property, there will be a due on sale clause as others have mentioned that would be triggered. 

But there are some circumstances where it might make sense to defer that loss such as if you expect to be in a higher tax bracket in the future and it would help to carry it forward.

My biggest expense possible barring some unforeseen disaster would be a new furnace for about $10,000.

They are just doing the most practical thing given the circumstances.

Real estate funds also allow you to invest in real estate without worrying about depreciation.Investors may benefit from pass-through depreciation, and the tax benefits will rest on the investor’s shoulders and be driven by their circumstances.

Hey @Amir J Reichental, There are small pros and cons to this: Home Address:Pros:Privacy: Providing your home address keeps your personal information private, as it's not tied directly to your business.Convenience: If you're already receiving mail and other communications at your home address, it may be more convenient to keep everything in one place.Cons:Risk: Using your home address exposes it to potential risks associated with the property owned by the LLC, such as lawsuits or creditors targeting your personal assets.Tax Implications: Depending on your jurisdiction, using your home address could have tax implications, especially if you're claiming any tax benefits or deductions related to the property.LLC Address:Pros:Asset Protection: Using your LLC address helps separate your personal assets from your business assets, providing an extra layer of liability protection.Business Image: Using the LLC address for business-related documents can help establish credibility and professionalism for your company.Cons:Public Record: LLC addresses are often part of public records, which means they may be more accessible to anyone who wants to find information about your business.Mail Handling: If you don't have a physical presence at the LLC address, you'll need to ensure mail forwarding or a reliable method of receiving important documents.Ultimately, the decision depends on your specific circumstances and priorities.

How can you make serious money when you rent in such circumstances, And then, when you want to sell, how can you get the promised capital gain when you constantly will have a flow of sellers, especially if they're dissatisfied with their rental returns all at once.

And there's no circumstance in which they can go on Schedule E. i.e., you just take the hit.That makes sense/seems fair.