There are pros and cons for LLC on taxes and protection.

What can a renter do to protect themselves?

Hi Folks,This is a Michigan-specific question for weekly Sheriff's sales: What strategies do investors use to protect their purchases during the redemption period?

To learn more about UDFI, see the following. https://www.irs.gov/irm/part7/irm_07-027-008.htmlFollowing are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k SimilaritiesBoth were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m); andNeither may be invested in your own business.  

Chris Lucas - Welcome to BiggerPockets.An LLC for your rentals is advised for asset protection.

Of course the google voice number also adds a layer of protection from Tenants which I prefer.

Cons: 1. 4+ family in NJ is subject to state regulation/inspection/tenant protections.

You as an investor, especially in a sandwich lease may choose to record your memorandum of option or other similar document to protect your interest and potential equity in the property, but you're unlikely to record the option with your tenant buyer. 

Once you find those people, you'll need to have a deal in which they can invest where you can show them how the deal works, how their investment is protected, where their payback + profit comes from, and your exit strategies - yes, plural!

@Dahl Brandon  As I've been educating myself and more have a PPM in place is definitely the most safest way to go protect myself moving forward making sure that everything is disclosed.