These are generally business loans based on assets and income of the property often structured as DSCR (Debt Service Coverage Ratio) loans.

Most hard money lenders will offer 8.75 - 10.00% on 5+ unit properties, depending on FICO, LTV, and Debt Service Coverage Ratio.

Then went to $2100 last year, then over $3k this year with less coverage.

The insurance company denied coverage because the smoke detector was not operational at the time of the fire.

Based on our coverage, it appears that we are protected.My question is, what does title insurance typically cover in this situation?

Third, will start addressing your question of umbrella coverage.

Carefully analyze if the potential rental income can support that level of financing costs and operating expenses.Get realistic projections on expected occupancy rates, average nightly rates, operating costs etc. from experienced short-term rental operators in that market.Calculate the debt service coverage ratio (DSCR) lenders will require based on the projected net operating income.

To mitigate this risk without using an LLC, consider:Umbrella Insurance: This provides additional liability coverage beyond your standard homeowners insurance.Equity Stripping: This involves placing a lien on the property to make it less attractive to potential creditors.Land Trusts: These can provide some anonymity and protection while allowing you to maintain personal ownership.Insurance:Ensure you have comprehensive insurance coverage, including:Property insuranceLiability insuranceFlood insurance (especially important in Florida)Loss of income insuranceLegal Structures:While you've decided against using an LLC, consider consulting with a local attorney specializing in real estate investments to explore other potential legal structures that might offer protection without the tax implications you're trying to avoid.Property Management:Given that you're based in Europe, consider hiring a professional property management company to handle day-to-day operations, tenant screening, and maintenance issues.Market Research:Thoroughly research the specific areas in Florida where you plan to invest.

.) - Many residential lenders now offer 'business loans' or DSCR (debt service coverage ratio loans) from 5-8-10 units.

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.