Trying to choose the "best" applicant opens up potential fair housing issues, even though you don't intend them.What if the "second best" applicant also happens to be a protected class?

In essence, the safeguards set to protect the public are circumvented.

anyone heard of or use the following to protect yourself as a "tenant"?

By forming the LLC you would gain personal liability protection but lose the ability to refinance conventionally in that 5 years.

What kind of protections should I have in place for myself, and what kind of precautions and protections will the lenders be taking.

Since you are on the board , run it like a business , get the reserves built up , raise the dues , protect your and your fellow owners assets by getting maintenance done , basic improvements , and good cash reserves.

I know it has something to do with better protection but have never seen a real value of that.On the same level, I use one bank account for my personal and real estate needs.

If you bought the property in your name, it still want protect you if someone sues you by putting it in a LLC.Joe Gore

To be quite honest with you I wouldn't solely rely on the lease to protect you in times of trouble.

Protect and prepare yourself financially, because you know how this will end.