@Prachi MethaDo yourself a favor and open an account, a commercial cat with Sherwin-Williams, And ask them to “test drive” as many gallons as you need up to 10 of oil base Pro Block Interior primer.

Let them know you would be in favor of that outcome.

That way you have favorable loan terms, no balloon or anything like that, all your cash available for whatever comes up, and you can still force appreciation. 

With the crazy market, houses in the neighborhood (within the last 5-6months) have been selling at very favorable prices - and not entirely updated.

FICO score crushed for the foreseeable future.2. stress on banking and investors who buy their loans.. maybe they just stop buying investor loans from small time landlord properties and you will see your values plummet with no liquidity in the market  just like 08 to 2010.reality is there are work outs for landlords there is mortgage forbearance for those that actually need it etc.. keep in mind 80% of renters are paying rent.. and on BP at least if you read the super landlords on this site hardly any of them are not getting paid.. its not a big enough problem that is going to curry public favor.. you are in a small business you do this for profit and loss and for risk reward.. don't want the risks don't buy rentals.

@Terry MillerDo me a favor watch Brandon Turner's youtube video.

Plus, you can have just one umbrella policy for the LLC to cover multiple properties which is much more efficient.Yes, if you are highly concerned about a lawsuit, then you need to establish LLC(s), refinance/finance with commercial loans (whose rates and terms are less favorable than conforming residential loans) so the mortgage is given by the LLC (and not you), and operate the LLC correctly to protect/maintain its corporate veil.So, sounds like you want to slowly change your existing LLC to a holding-type LLC? 

@Michael Plante my home market is not conducive to the strategy of small MF properties and the landlord tenant laws are not in our favor.

All that cash comes from the LP, who makes $6,300 less.It certainly seems like this is 100% skewed in favor of the Sponsor at the expense of the LP, based on my understanding.

Here in NYC, landlord/tenant laws are increasingly favoring the tenant so you might have better protection OOS.That being said, NYC is still a great option.