Yes, good thoughts Chris, profits in private deals, lenders can't take profits in connection with loans, yields are unknown and usury comes into play as well as liability and security issues.

Talk to your lawyer ASAP and be extremely careful with everything you say to tenant to not admit liability.

from a liability standpoint, yes

They are a constant liability, both in decades of monthly payments as well as impacting your debt-to-income ratio.

The cash receipts of the Company shall be applied in the following order of priority: (1) To pay the debts and expenses of the Limited Liability as they become due; (2) To the Asset Manager of the Limited Liability Company his fees as described herein; then (3) The establishment of a necessary reserve of funds as determined by the Managers in their sole discretion; then (4) To the Members of the Limited Liability for their preferred return as described herein; (5) To the Members in proportion to their membership interest; and Section 4.03 Preferred Returns.

In the slip and fall case, had the attorney get after the insurance company, then the litigant dropped the case.But the best thing beyond getting your own liability insurance is for you to require your tenant to get renter's insurance.  

So you will go from no tax liability and reinvesting all the money to paying 40% of your profit to the IRS in ordinary income tax + self employment tax + ACA surcharge tax + state tax.  

Umbrella=excess liability (as in liability over another policy).

Not a shot in hell they would take on that liability because it is just so so not even close to true.

. § 14-11-702, which reads as follws: (b) Without excluding other activities which may not constitute transacting business in this state, a foreign limited liability company shall not be considered to be transacting business in this state, for the purpose of qualification under this chapter, solely by reason of carrying on in this state any one or more of the following activities: (1) Maintaining or defending any action or administrative or arbitration proceeding or effecting the settlement thereof or the settlement of claims or disputes; (2) Holding meetings of its managers, members, or other owners or carrying on other activities concerning its internal affairs; (3) Maintaining bank accounts, share accounts in savings and loan associations, custodial or agency arrangements with a bank or trust company, or stock or bond brokerage accounts; (4) Maintaining offices or agencies for the transfer, exchange, and registration of membership or other ownership interests in it or appointing and maintaining trustees or depositaries with relation to such interests; (5) Effecting sales through independent contractors; (6) Soliciting or procuring orders, whether by mail or through employees or agents or otherwise, where such orders require acceptance outside this state before becoming binding contracts and where such contracts do not involve any local performance other than delivery and installation; (7) Making loans or creating or acquiring evidences of debt, mortgages, or liens on real or personal property or recording the same; (8) Securing or collecting debts or enforcing any rights in property securing the same; (9) Owning, without more, real or personal property; (10) Conducting an isolated transaction not in the course of a number of repeated transactions of a like nature; (11) Effecting transactions in interstate or foreign commerce; (12) Serving as trustee, executor, administrator, or guardian, or in like fiduciary capacity, where permitted so to serve by the laws of this state; or (13) Owning directly or indirectly an interest in or controlling directly or indirectly another person organized under the laws of or transacting business within this state.Good luck!