To that I say, "Nah, its not that bad, but hey is it hard to get up and go to work everyday, work for a company that can fire you for any reason, pay you what they want  and require you to work when they want .....is that hard at all?"

Something to consider in the coming months especially as people might start looking to downsize.   1) read every day! 

@Max RievesIt doesn't sound like a single member LLC if you have other members who are investing capital.Regarding multi-member LLC's, you want to keep track of everyone's basis, which includes contribution, share of profits/losses and distribution.You may also have a requirement of issuing a K-1 to each investor.

Future payments from the fund will be made on a monthly basis to hosts with qualifying cancellations.

Why else would they work on a commission type basis? 

He went to the extent to make me to feel bad everyday by saying I waver by financial contingency and I will lose by earnest money if I don't go ahead.

We're learning more every day, but I can't see home values dropping significantly in the near future - and rents sure aren't going down.

A pretty bad investment.This is a great strategy, but you have to have the ability to acquire assets at a very low basis in markets where they can hit a strong occupancy and rent.

If she inherited the property recently (step-up in basis), it is possible she may not owe very much in capital gains?

Creditors for future credit applications (such as a mortgage, purchase or refinance) are, and will be, allowed to discriminate on that basis even if there is no FICO impact, just like "declared bankruptcy" or "did not pay court ordered child support" - they can hold those things against you even if you have an 850 FICO score.