Currently, the maximum penalty that can be imposed on lenders is $6,500 for each violation, up to a limit of $1.25 million for all violations committed during any one-year period.

Aside from that fair housing laws don't let you impose different limits of occupancy.

If they do not know what you're trying to do they will be all over the map and it will cause unnecessary mistakes, delays and possible failure because not everyone was on the same page.Make sure they know what their roles, responsibilities and expectations are on the team.

Everyone is different, but if you focus on the 'wins' (or positives) the negatives are less imposing.

Not to mention, soliciting the sale of an LLC falls under securities laws, an unnecessary risk in and of itself.

But real estate is a relationship business, so unless you want to make unnecessary enemies (and local RE agents are very quick to make enemies), just learn the rules of the game and keep playing it.Btw...

And each state will impose its own special challenges, such as TX and NC.

Things to consider: any HOA imposed rental restrictions?

Many people don't want to be "confrontational" at the closing table, but you would have taken an unnecessary risk walking out of there with a personal check.These are great lessons for the uninitiated to learn and know about.

The need for setting up a new entity is often something new real estate investors feel they need to do, but may be premature or unnecessary, depending on where you are in life.