My thoughts coming from a non-attorney; an LLC will not protect you from any professional negligence or tortious claims, but may protect you from certain liabilities that could arise from owning property with tenants.I would get advice from an active CPA in this space on transferring property to an LLC-- you wouldn’t want to trigger any tax obligations, and you definitely want to document as necessary.

Such a bad experience for you, but definitely a rise from the ashes story at the same time.

@Chris Skala When investing in a self-directed IRA you have a 3rd party intermediary handle the actual cash payments and movement of money between vendors, tenants and any other needs that arise.  

It's a great strategy specially in a rising market.

He proceeded to explain to her the potential problems that could arise from not addressing this.

My point of concern is the liability that may arise from a holder of a note trying to work with a loan originator to refinance a borrower and how all that comes into being.As the Mortgagee you are bound by certain privacy restrictions the origination documents may have put in place on top of customary privacy restrictions for such things.  

I've never had this situation arise before and I'm looking for advice.

Everyone is so close and pays for the common space so conflicts can arise easier if they notice lots of different people coming in and out of your unit.

In a rising market, the good deals are NOT on the MLS.

My main concern with California is that it's not landlord-friendly, and rent control seems to be a rising problem.