I've never heard of a scenario where that has happened and was hoping you might know of one that you could share.Your argument does not illustrate why there might be an advantage to paying a high priced lawyer to set up a complex entity structure instead of just paying for a significant amount of liability insurance.I could get in a costly car accident anytime I leave the house.  

Even it was an accident, there are nevertheless some points in there worth considering.Also, thanks for the leads on Atlas and Real Property Management. 

It seems there are many options such as mitigating the accidents from happening, having a good PM, having a large enough unbrella policy, and putting the property in a LLC.

I've never bought a property that didn't have something unexpected upon inspection. 

I would use the heloc to pay off that interest and also that way you can dip into heloc for any build overrage, unexpected expense, etc..

Whether it's an unexpected repair, a tenant issue, or just feeling like you overpaid for a property, time really does heal (almost) all wounds.

I agree with the others.I had tenants for various reasons had to terminate their lease early, among them: loss of job and have to move home to mom, a bad cop caught in a corruption sting, a big promotion with a big increase, and one who got an unexpected promotion three months after she moved in.

The interest portion you pay each month is simply the outstanding balance at that moment times 1/12th of the annual interest rate....exactly the same way a heloc is calculated.The savings boil down to paying extra on the mortgage balance, which decreases the interest owed each month, thus increasing the portion of the fixed payment that goes goes toward principal (“moving ahead in the amortization schedule”).....it doesn’t really matter if you pay the loan down directly or use a heloc to do it and then pay that heloc back.....it’s still the same “extra” money out of your pocket.One of the staunchest promoters of this, pitched mostly by the Renautus guys, finally admitted the result is the same, it’s just that you have a heloc available for emergencies/unexpected expenses.  

Of course, human beings have problems they cannot choose like illness or accidents, but actively choosing the life you want to lead, knowing you are taking on the problems that come with that life choice, can make it much easier to bear the problems that arise like, for me, tenant issues or a delay in closing or down time when you have to save for a down payment on your next rental and it's taking longer than you want.

But if I did something above and beyond to help you out of a tough situation and you compensated me unexpectedly.