Because if you pay rent to yourself as an expense of the LLC then you have rental income on you personally.

I do not know of a BRRRR opportunity that doesn't have a life cycle that costs less than like 22k including all out of pocket expenses and that's if your purchase is around 75k - 90k.When I am setting up a market for my clients, first thing I do is call some agents in the market. 

If you part ways with them, they get to stay at the lower rent amount:(With MTM lease, you can then give them 30-Day Notice if you part ways.

Yes and I agree don’t lower the reno budget  

You may certainly make mistakes to learn from but they can prove to be very expensive lessons.What price point are you seeing that is tempting you?

I saw in another post that he could open up a HELOC as a backup, or for unforeseen expenses just in case, but we’re really struggling with what to do here and don’t want this project to negatively impact our relationship in any way. 

It also usually comes with the bonus of lowering their monthly expenses over what they were paying in rent, but immediate cash flow is not always possible given the purchase prices in the areas most of my clients want to buy.

The cash flow has changed drastically and not brining in enough to cover all expenses.

I am considering one of the lower tiers because I am like you and looking for people to partner with.

That being said say it takes 2-3 years to move out rents could and likely will be higher and you could potentially refi to a lower payment.