Make sure you don't take partial payments (unless you're okay with that) or it protects them from eventual eviction.

(I prefer LLC for the additional protection against litigation/liability).

With that being said, if you are just starting out, and especially in the current market, I would shoot for lower to have that downside protection and to be able to present a really good deal to the end buyer. 

However, there are still companies powering through finding ways to make deals happen.With the protection the government is providing to banks, they are still able to lend as well.Three key words to remember when raising capital that will help you get started: Relationships, Plan, Deals.Relationships - This industry is based on relationship building and trust.You must establish trust with investors.

So many things could go worst than current conditions that at this point I'm considering losing my earnest deposit ($3k) in order to protect my cash. deal numbers:purchase price 157karv 280kestimated rent 1800/mmonthly profits after expense: ~$200What would you do in my situation?

@Mark Miles while this might work, it is probably not the most socially responsible thing to do if your local government is trying to protect from the spread of disease.

It is advisable to do that for an AZ property - that way, if you are sued for an issue occurring in AZ, you know that AZ will recognize your LLC protection.

This will give you the best protection against your personal home.

A player in the STR field (not on BP that I’m aware of) has spent “hours in the recent weeks creating a survival guide for STR hosts” on surviving the Covid-19. 

@Liza RhimaI think that postponing evictions for tenants in the Phoenix metro area who are seriously affected by the Coronavirus is the right thing to do, but I think that measures should also be taken to help protect landlords as well (since they're the ones with the real investment to lose).