Several things to consider: 1) One of the main purposes of segmenting your assets into separate LLC's is so that your personal net worth or equity in other business ventures or properties isn't exposed, so unless you have a high net worth or a lot of equity in a property, it might not be worth bothering going the separate LLC route, especially when it restricts your financing of the property.  2) Most any commercial financing you get from a local bank for a small property is going to have recourse anyhow and require that you sign a personal guarantee, so you're still personally on the hook to the bank even in the case of a commercial loan.  3) If you're a newer investor and buying a deal that's tight on cash flow, or if you don't have a ton of cash sitting in the bank already, your greatest risk factor as an investor is your investment failing economically due to poor financing terms or not operating the investment properly, not because you get sued. 

🎯 I get it, though—pulling the trigger on the first deal feels like stepping off the ledge.

never heard of them looking at their website they show the owners etc.

Hi Myriam,Welcome to the BP forum and starting can be a little confusing but that is why we are here to help. 

Renting by room can be tricky and is why a lot of PMs try avoiding it.

Purchase price: $365,000 Cash invested: $550,000 Bought to live in, forced some equity and was able to get out almost all of my cash. 2.3% interest rate!

I’m a Colorado commercial insurance broker and have a lot of carriers available in my agency.  

Purchase price: $8,000 Cash invested: $2,000 I purchased 2.5 acres of Raw Land in Joshua Tree, less than ten minute drive from the park and downtown area in 2018.Purchased via seller financing.2k down with monthly installments to pay out rest.Current similar lots are selling for around $65kI plan to hold long term Would eventually love to develop something on the land-either an art park or residence.

I will then need to go after you for all of the expenses of eviction, moving the home and storage fees.

There are some great tax strategies for short-term rentals, but very important to be aware of the personal use rules to make sure 280(A) doesn't become an issue.