Even though it’s family, treat it like a traditional business deal...draft and sign a promissory note, record the note as their having the 1st deed to the property so that they can be named as loss payee on the insurance policy, just in case.Also, something to think about on both ends, buying and selling to family, you should pass the commissions that you would be paying to an agent along to any family member who is buying rom you, or vice versa...automatic 6% discount, as that money would have gone out the door anyhow.Best of luck!

I have found that they typically do not honor their leases or treat me right, and this is one of the red flags I look for when screening tenants.

I was able to meet the income qualifications for the loan I am seeking, but found it very odd how underwriting treats passive losses for income qualification purposes.

Not certain if you plan on purchasing more property in the future, but treat your investment as a business.

The key is to be consistent and treat all applicants the same to avoid any Fair Housing complaints.Nationwide, over 93% of tenants are paying their rent: https://www.nmhc.org/research-insight/nmhc-rent-payment-tracker/. 

However, they are subject to clearing your normal (i.e. treat all applicants the same) screening. 

So you are treating it like an investment. 

You have to treat the second mortgage as consumer dept and they are ultimatley responsible for it.

The only thing that might happen is they treat the property better because they know they're living with the owner, and they know that repairs will get done in a timely manner since you're living right alongside them, win-winIn regards to the LLC question, I'd look around more on BP forums and also ask a local attorney.

We treat them all as equally as possible, but realize some are very high maintenance, and others, sadly, have taken advantage of us, asking low rates to begin with, as they build, and then we make them a lot of money, only to ask us to lower our rates, so they can earn more by saving on our cost, since we are to them, essentially, overhead.