I will keep him in mind for future reference.

Just make sure to properly allocate the purchase price between the rental and residential portions and keep clear records.

Now you can be in a situation where the property's income isn't covering the expenses - which puts you in a bind to be able to pay your bills and keep your properties running.  

Unfortunately he's correct...any funds you keep are profit first, then basis.

Most hard money loans are personally guaranteed, which means you will take the loan out in your LLC, buy you will qualify with your personal credit. 

Keeping your payments artificially low seems great until you need the coverage and there is non because you made a material mis-representation in the contract.

We put a lot of efford and attention into keeping basements dry, but we still have an occasional pipe burst or sump pump fail and see issues and when you get water in a basement; carpet can be dried and cleaned, it's the open cell pad that is holding on to gallons of water like a kitchen sponge.

People were inspired to think about passive income and other investments by what I taught them and the success stories I shared.It was important to keep in mind, though, that not everyone would be a good investment.

It helps protect your personal assets and keeps your business operations separate.

The thing is a lay person doesnt really understand what a title company is doing, so its hard for them to actually gage what is good or bad work.