@Chris RandInvestors who have rental properties report their rental activities on schedule E.You report rental income less expenses(insurance, utilities, repairs, mortgage interest, real estate taxes, depreciation etc).The great thing about real estate is that you may have a cash-flow positive business but report a taxable loss thanks to depreciation.The difference between cash-flow and taxable rental income is that depreciation is factored into taxable rental income and principal payments are not a tax deduction.generally speaking cash flow - depreciation + principal payments = taxable rental income

He said that it was a good idea as any business transaction should be done under an LLC as a homeowners policy likely doesn’t cover contractual liability.What else do I need to go along with the LLC?

All real estate activities you engage in need to be approved by your broker as their insurance can have a clsim filed against for any of your activities.

That means, if your current debt ratio is 50% or lower without buying the home, then it should still be about 50% or lower after buying the home as a rental.Fannie Mae will allow you do a 1 unit at 15% down payment, although you might consider a 20% down to avoid mortgage insurance and help lower your debt ratio.

Have not "shopped" for insurance. 

Taxes, insurance and mortgage. 

I'm currently working to partner with the larger property management companies like Greystar, and Costar to ask them to modify their anti-short term rental policies, in short term friendly cities like Scottsdale.

I’m wondering...(1) If the association decides to implement a no renters policy and I already have the tenants in the unit, am I protected under a ‘grandfather’ situation, or could they force my tenants out?

If you want to sell the property, you'd have to release your own mortgage from your NPN to convey clear title.In my experience, it's difficult to find title companies that will insure title on HOA lien foreclosures.

Didn't he have title search and title insurance?