* What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits* How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?

There will likely be selective enforcement -- only on STRs, and that will likely provoke a lawsuit that I'm not sure the city is funded for. 

Have you looked into SFR with mother in-law suites or ADUs? 

I’d say more power to him (the poster), but the almost certainty of something going south and resultant lawsuits temper my enthusiasm.While I guess this deal is possible, my suspicion would be that it will fall apart because it just doesn’t make sense  

Perhaps this next one could be a SFH that has a mother-in-law suite or ADU?

You realize the if your tenant owes money to collections for bills unpaid, a car accident lawsuit, etc. part of your LLC could be taken to pay their debt? 

And what do you stand to lose if (when) things go south and you get crushed by one or more lawsuits?

But in case of lawsuit, it will be heavily scrutinized and may break your protection.

Setting up an legal entity requires more than just the shell company name but you will need legal docs in case of lawsuits.

He touched on some points of why you anonymity is important for us ( for legal reasons for example if people are thinking to pursue a lawsuit and then see an MD after your name that may become a financial incentive for them to pursue it... it did make sense to me however having an LLC and trying to get a loan in the LLC name can be challenging from lender standpoint ... that could be a special challenge for us)