And lets say you then rehab it only to find out there is bad title and you make a title claim.. if there is no loan on it your only going to get 50k from title insurance and you will lose the 50k you paid for the assignment and any money you put into rehab. 

Logically I can't make a solid business case to cancel them, as the cash flow is fine vs losing it all with a tornado.

I guess a flat seasonal fee like any insurance policy, sometimes you win, sometimes you lose.

Because, the lender is entitled to know what risk they are taking with their money.That being said, on seller financing, if someone gets sued and loses, the lien/judgement can be filed at the county, (it's not automatic, someone has to prepare and send the paperwork) which the bureaus will pick it up on producing a credit report.

As of now, they owe me:Half of November’s rentAll of December’s rentAll of January’s rentThat’s about $5,500 total, which is a lot of money to lose.

The opportunity cost of losing potential market gains in your retirement fund should also be considered.

I've heard too many stories of investors purchasing homes for STR use, only to find that they lose their permit or the ability to transfer it when they sell.

I would get with the city asap and find out all the details on this.It could be possible that if the LLC changes hands that it loses it's exemption.

Trust me; you don't want to miss those crucial dates and risk losing money or even blowing the whole deal.

What happens if you lose on it, you now have an additional liability, not just a loss of money.Are you planning on keeping the current property or exchanging it (1031) into something else?