You regular liability and property insurance would be there as well ...

I need to create an LLC for financing as well as liability reasons.

@Curtis YoderThen It's a completely liability for them only.  

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)