The final rule implements sections 1411 and 1412 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which generally require creditors to make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes certain protections from liability under this requirement for “qualified mortgages.”

Here's a definition of an umbrella policy from the Geico site, it describes it pretty clearly:Provides additional liability coverage above the limits of your homeowners, auto, and boat insurance policies.

This is a liability situation and that's different than the damages to your unit.

Why would I pay, say 5%, to a birddog that has little knowledge, that I'd have to train and that has no liability or responsibility in the deal?

Yes, this gets more involved, but making an investor a member can be a big plus avoiding lending issues and having to file liens when accounting practices can govern capital contributions to a specific deal.The Series LLC is not available in all states, there are advantages as to liability inside the entity and between partners, but it can also have other issues requiring all members execute notes, assignments and contingent liabilities when the interests of others are significant to the LLC, a member's cell may be able to conduct its own business and that member may be required to be subsidized in some cases.Don't forget in the replacement of members to include the refusal to act in a given time period from notice, it's a real pain when the guy just won't act but isn't dead or incapacitated. 

Consider the liabilities that you are accepting as his employer..... driving around while on the clock, drunk, hits somebody...... gets hurt on the job, giant increase in WC premium for a long, long, long time...... damages products or materials during installation, guess who gets to pay for them and can't deduct them legally from his pay check...... you run out of work, he collects unemployment...These may be worst case situations, but they still exist and lets not forget incentives to being productive... hourly employees have little financial incentive to being productive, it basically comes down to a combination of a mixture fear of losing a job, how much they can get away with and of course their work ethic.What all this means is that unless there is huge gain for you somewhere beyond just a couple of thousand dollars over a year there is no way you will offset these issues, there would need to be some very large gains, possibly non-financial to warrant hiring this guy versus paying him as a 1099.

With FHA rental income offest is calculated at 75% of gross minus PITIA of the property (prin/int/tax/ins/assessments monthly) to determine income or liability to qualify for. 

Their lease expires in a coupe of months and we are debating whether to renew their lease because of increased exposure to liability. 

On our way home he downloaded the game on my IPad and was teaching my 8 year old daughter about stocks, assets, liabilities and all things "Rich Dad"..  

In the USA Grandma may have a huge capital gains liability due in one tax year if she were to sell normally, particularly if she has held the house for quite some time.