While it is certainly true that Billy ought to have sufficient reserves and all that, the fact is that there are many times where not actually being bound to the higher payment would be beneficial.

I don't even like talking about expense rules until you can figure out if the area is solid and you have a sufficient amount of demand to keep the building filled.

If you have each llc with sufficient capital, who knows exactly what that is, but for discussion, lets say $50,000 and insurance on top of that....ok, you are likely fine on the personal side...they just wipe out the llc....assuming of course they get judgement.

I would guess that with 10/15 yr mortgages, the rents are only covering the mortgages, which means he's pumping in additional equity into his real estate business to fund maintenance, repairs and vacancy expenses since he doesn't have sufficient cash flow to cover these additional cost in addition to making the mortgage payments.There is nothing wrong with this strategy as long as you have additional free cash from your regular income to cover these additional costs that may not occur every single month, but do occur nonetheless.Taking the 15 yr mortgage can reduce your cost of capital, thus increase your net income, but it comes at the expense of free cash flow.

We collect a sufficient security deposit and also include a few key clauses in our rental agreement, such as:NOISE, PEACE &QUIET. 

I will have to ask the contractors if that would be sufficient with no ground slope.

As it stands, coming up with a sufficient down payment, monthly payment, holding cost, and reserves, seems like kind of a long shot w/only 10-15k in my market.

The borrower must have sufficient funds to cover borrower-paid closing costs and fees at the time of settlement.

Tell them it is part of the lender's loan file and is privileged lending information, but that the appraisal was sufficient for the loan applied for.

If you do not have substantial assets for someone to come after in a lawsuit, then having liability coverage is sufficient.