My handyman carries a $1,000,000 liability policy.So you can upgrade your business to a lot more units and still do some of the work yourself. 

I have a question regarding liability for a childcare situation that has developed recently on my residential rental property.

It can be a substantial liability but I'm sure there are lease/rental language you can get that lessens your risk. 

Believe me, the inspectors have plenty in their contracts to avoid liability when they miss something and you get stuck with a tear-down. 

@Rochelle Wilkinson - as the others have stated, consult an attorney experienced in matters like this immediately.Expect your attorney to discuss with you how this issue may bleed over into some other potential exposure/liability.  

If your plan is to go straight for an investor-buyer, build your numbers & eventual exit price with a nice discount off of that comp number, 20% off is a good ballpark. 4) I'm renting while investing, & here's my approach as I see it, you may see it different :) I split my rent with two other people, so costs are super low, no liabilities, while leaving the credit free for the right mortgage.

If the interest on the heloc is 4 pct the value of the tax shield is only 500 dollars, assuming your effective tax rate is around 25pct. (50k x 4 pct x tax rate-- represents your dollar reduction in tax liability on ordinary income)

Bott's coverage issue above, yes tenant damage may be excluded, but in addition all liability coverage would be excluded if written on a personal lines policy.The key to insurance is this, tell the insurance agent exactly what is going on, if they cannot handle it, let Br.

Indeed, I am just facilitating the tenant's early departure while trying to mitigate their liability as a consequence of the default.

If the paint business you own starts making a monthly income of 40% or more of the loans mortgage and your liabilities/expenses are low enough, wouldn't the bank not have a problem giving the money to invest into real estate for strictly business and not personal purposes, if your numbers make sense?