Toledo is already a dying city, and this added burden may be enough to force even more capital to flee from it.

It's like anything else nobody's forcing you to do something.

Otherwise they might force you to qualify your new loan as an investment property, which wont offer as good of rates, the cash to close is typically higher, and it's harder to qualify. 

It forces you to use commercial financing with larger down payments and shorter adjustable rate terms.If you don't have a partner, I would just keep in my personal name and maintain adequate insurance to cover the liability. 

I'm searching for C/C+ towns.

That no-money down VA loan is powerful if you can find a place where you can force enough equity to Refinance out into a conventional loan.  

The rest of Raleigh is a little bubbly and cash flow is difficult unless you force appreciation with a rehab or get off market deals.

So either pay the loan down enough to refinance or rely on forced or market appreciation. 

., so are YOU defending the llc in that suit or just going to let them get a judgement and theoretically force sale of property?

He pointed out ridiculous things like a small crack in the sidewalk, a hole no bigger than a pea in the siding,  the screen door closed with too fast, said the garage door opener came down with too much force and it should be replaced ( I tested it and it was fine), and on and on and on.