The reason why we are comfortable with this is that we have both established and co-managed a homebuilding non-profit together.

When you reference "Hard Money" are you referring to a fix and flip or bridge loan, or just non-QM?

Then you can have a conventional roommate situation and save money towards the next down payment.

We also have good enough cash put aside for a %20 down payment.

If there is a $100,000 loss, the payment under the policy would be $50,000 (less the deductible).The named insured on the policies need to match the ownership. 

@Dave Hart There are no tax benefits to a LLC, unless investing with a non-spousal partner.The taxation of the LLC will just about be always a "pass-thru" entity. 

BTW, you must get a phila tax ID first, then a commercial activity license, and finally a rental license.Hope this helpshttps://www.phila.gov/services/permits-violations-licenses/g...https://www.phila.gov/services/permits-violations-licenses/g...https://www.phila.gov/services/payments-assistance-taxes/tax... 

I'm considering purchasing a condo that is non-warrantable (not eligible for conventional financing) because one owner owns too many units and there is a pending lawsuit against the HOA.

Hopefully, with a big enough down payment the mortgate will be low enough for tenants to cover.

The Rental Property Association of Wisconsin is a Milwaukee based non-profit for landlords.