We have a vested interest in protecting our clients assets and don't spend money frivolously. 

because tenants are a powerful lobby group and they can and do change the laws to protect themselves....

I have an option contract to protect me from the owner selling after I start renovations.

I'm in Massachusetts, if that makes a difference, but I'm wondering what are the requirements for a new owner to be able to file a modification to gain the protection of the DPS status?

A heads up - before you send out your deposit accounting read the CA laws very carefully -  thankfully laws are changing to protect tenants from over charges from the security deposit - but this means there are very strict laws regarding this. 

The best way to protect against these types of suits is to take care of your properties and your tenants so there is no reason to sue you.

We've already agreed on rates, and I'm going to ensure all the paperwork protects me just like it would any other lender (proper contracts, personal guarantee, etc)The part I'm unsure of is what type of entity it should be under, just a regular LLC?

How can my mom and grandmother both be protected?

“Addressing this risk will strengthen U.S. national security and help protect the integrity of the U.S. financial system.”Details of the initiative still to be worked out include which types of real estate, including commercial property, would be included.

I know of many other people who do it under their own name, I prefer the protection of the llc.