Right now I create a separate account in Quick Books for the deposit of each unit and list it as a current liability.

want me to carry a $2M liability policy which would name them as also insured.

Not paying another company's overhead or profit, which would significantly impact labor to materials ratio.I use all subs...That said, if I had employee labor, I'd have additional overhead for employment taxes, liability/workers comp insurance, tools, vehicles, etc.

I'm no lawyer, so no legal advice, but I would be nervous of the liability of having someone's belongings in my home or their having a key to my property before their lease began.

My attorney actually advised against forming an LLC, and just recommended having a good umbrella liability insurance policy.

Spread the liability a little bit.

That eliminates any doubt, and relieves you of a great deal of the liability.

The downside to renting is the landlord keeps raising the rents making it hard to control costs.The upside is the landlord is responsible for the repairs to the building if you set up your lease correctly.With owning the real estate you control costs better as the mortgage is fixed and principal is paid down over time.Later if the business goes bad or sales slow you have an asset with the land and building you can sell and cash out.If you are just renting you and the business goes bad you have old equipment you might get 10 to 15 cents on the dollar with and that's it plus you have the looming liability of the lease with the landlord left.Why not go work at a bar as a bartender and see if you like the business or not from behind the scenes??

What does the investor owner get for all his brain damage and actual risks assumed, I suppose he works for nothing.Never said there weren't GCs with degrees, if the have one in finance, accounting or economics they should understand that one is a paid agent/employee and the other is the owner-risk taker and that there is a clear distinction of rights to profits.The scammer types seem to put themselves out in a residential deal as if they are the engineer or architect, which they are not, nor are their risks or liabilities extended to such heights, yet the want to be treated as if they are in the same domain and be compensated in a similar manner.

Sellers tax liability could be less selling at a discount.If you have a default you will have any deficiency judgement, if allowed, limited to your purchase price not the upb.