Or are those separate from the PM fees?

We had 2 separate attorneys reveiw our files and they both ran their own background checks and they both said that we did nothing wrong, we got scammed.

Unfortunately for you and most new landlords (myself included), tenants will play to your emotional side, and being a nice person you want to work with them.

But I’m just unsure about the whole thing, it sounds like this tenant has a real emotional need so i don’t think it’s a fake.

As added insurance, I would recommend filing a separate tax return (probably a 1065 partnership return) for the LLC, even if it's a single-member and not technically required to file a tax return.

The law views an LLC as separate from you personally, as long as you follow a bunch of rules (ie, don't "breach the corporate veil").

Don't make emotional decisions.

But I’m just unsure about the whole thing, it sounds like this tenant has a real emotional need so i don’t think it’s a fake.

Refinance, new investment and sell primary: Refinance primary to get ~$50k out, find a separate cheap investment property that can cash flow (aim for under $250k purchase price so we can put 25% down), and then sell the primary at end of next year to get remaining equity out to use as a down payment for a new primary (assuming it will be about $80-$100k net with expected increase in value due to being in a hot neighborhood and purchase price of ~$500k, know it's less than 20% down)Considerations: I am expecting the next primary to be a place where we spend 4-5 years max (expecting significant increase in career based income after initial partnership buy in).

However, I would like to set up an LLC so that I can start a business bank account to separate all revenue (monthly rent) and expenses (renovations, utilities, etc) from personal expenses.