@Wade Guy Here's the problem with this exercise:  lets say you start off with one house, then you trade it for a bigger house.  

(d) A statement that includes both of the following:(i) That the department is appointed the agent of the foreign limited liability company for service ofprocess if no agent has been appointed under subdivision (c), or, if appointed, the agent's authority has been revoked, the agent has resigned, or the agent cannot be found or served through the exercise of reasonablediligence.

If you are making monthly installment payments for their " preferred equity " and it looks like a loan, its really a loan........I would look at giving them an Option for the equity which allows them the right to purchase the property back and in that Option, give yourself an ample amount of time to buy their Option back and make sure they CAN'T exercise the Option during that period of time. 

The exercise, should be played out over the length of the hold.I would also take into account the tax plays.

Try this exercise: look up (1) the historical price of your Midwest SFR at the time of first sale, (2) the rate of inflation from the year the SFR was built until the present and (3) the market value of the property. 

I have read a few other forums discouraging this, however, I tend to do very well with coaching and guided exercises.

We know things can go wrong, but it’s important you work within your budget or towards returning to it as soon as possible.Investing In The Wrong RefurbishmentsWhen planning any enhancements to the home, always think strategically about what potential buyers may be looking for.

Insurance does not protect you from a bank exercising its right to call the loan due.  

If they exercise their option to purchase the house from you, then they will need to get a homeowner's policy.

(G)executive departments and agencies in connection with the issuance of government-sponsored individually-billed travel charge cards.(4)In response to a request by the head of a State or local child support enforcement agency (or a State or local government official authorized by the head of such an agency), if the person making the request certifies to the consumer reporting agency that—(A)the consumer report is needed for the purpose of establishing an individual’s capacity to make child support payments, determining the appropriate level of such payments, or enforcing a child support order, award, agreement, or judgment;(B)the parentage of the consumer for the child to which the obligation relates has been established or acknowledged by the consumer in accordance with State laws under which the obligation arises (if required by those laws); and(C)the consumer report will be kept confidential, will be used solely for a purpose described in subparagraph (A), and will not be used in connection with any other civil, administrative, or criminal proceeding, or for any other purpose.(5)To an agency administering a State plan under section 654 of title 42 for use to set an initial or modified child support award.(6)To the Federal Deposit Insurance Corporation or the National Credit Union Administration as part of its preparation for its appointment or as part of its exercise of powers, as conservator, receiver, or liquidating agent for an insured depository institution or insured credit union under the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.] or the Federal Credit Union Act [12 U.S.C. 1751 et seq.], or other applicable Federal or State law, or in connection with the resolution or liquidation of a failed or failing insured depository institution or insured credit union, as applicable.