They can't pass the background check necessary for licensing.

We require background checks for all tenants before we proceed with a lease.

Technically speaking almost all residential loans are "non-transferable" so when you transfer it to an LLC you could trigger a payoff.

As I'm transitioning out of the Army, I've spent most of my time pursuing my RE activities that technically qualifies me as a "RE Professional" based on the IRS requirements.

But there are a few caveats: 1) we technically have no primary residence since we live overseas on US government orders (and our housing is covered), 2) we own 3 investment properties and we were told we could not purchase any more properties (could not exceed 3) while we had the HELOC open (we were using the HELOC to cover improvements), and 3) this was a year ago, when the economy was good.

However I dont see how there was such a dramatic increase in water and sewage without something fishy happening in the background.

Little background...

I'm not sure if I'm understanding you correctly, but basically the LTC you can expect will come from your background: credit, experience, etc.If you want to improve what you can get you can bring on a partner who adds to that background so you can be more fundable as a team.

Do a background check?

Although, income, employment, background, etc all need to check out too.If you are not comfortable, and do not NEED to rent it, then don't take the risk.