Normal home owners insurance covers the house, liability, a bunch of miscellaneous items, and all your stuff (furniture, clothing, appliances, etc etc).

I am currently living in the main house, but will soon be moving in the upcoming summer due to another purchase.

The City of LA is short housing and having roommates is common.

I am looking for ways not to be responsible for the house and yet not pay the capital gains tax? 

Mainly because I can craft the mortgage a little more (no pre-payment penalties, lower down payment, etc.) and eliminate the fees charged by lenders and brokers.One of the benefits of purchasing a listed property is that the broker will normally set the seller's expectations a bit more than you just contacting them off the street.It comes down to what the seller really wants: a certain price, interest, down payment, or term.

Quality I wouldn't mind in my house, maybe just a little lower end.Never had much issue with extra wear. 

Most importantly, if you decide to rent out your house, use the BP resources and learn the ropes even if you get property management, because you will need to ensure they are doing what they should be. 

Guessing the potential long term construction of a new road and housing development with no time line is scaring people away.

Purchase price: $565,000 Cash invested: $33,500 Bought the house to live in and build an ADU on the property because it is zoned for it.

I rented to house within 3 weeks and they are paying to the LLC bank account and I am paying the mortgage with the LLC account.