Everyone needs to understand that there are enough laws out there to nail anyone if the powers to be want you nailed, there really isn't some unique law or regulation that will be avoided the same way for multiple operators, your case will always be different.Walking a thin line is a risk assessment, the parties involved, the intent of the parties, their financial position,  and experience, what is customary in your area, political views and opinions of your local courts, the degree of a violation, the public harm at risk, if any losses were suffered and other implications of you following some loophole.

The LLC is a disregarded entity, and all of the income and loss are treated as though directly attributed to the individual.I don't see how debt forgiveness is going to play a role here.  

At which point, you could be at a loss as to which jurisdiction the Trustee qualified in.

If you don't mind more turnover it may be a way to lessen that loss per month.

If I had a disaster and the house was deemed a total loss I would get the cash value of the policy minus demo costs and mortgage payoff.

Someone who is a millionaire and wants capital preservation may want a 4-5% return to safeguard against losses, so that is an acceptable return for him and one he may consider "good" for that purpose, when he knows a 4-5% return is horrible in the grand scheme of things. 

Try to negotiate a move-out that will mitigate the chances of more property destruction and monetary loss. 

Are those documents replesible in case of a loss?

Pick a couple colors (two colors from the same color sample stick is a good tactic; make sure they're at least two shades apart from each other) for the walls and USE FLAT paint on the walls.

For instance, in New York, a person has three years from the date of loss to bring a personal injury lawsuit.