It is far easier if you pay the bill on her behalf (which you are going to have to pay anyway) then when she pays rent, the first monies go to repaying you for the water bill. 

How do you plan to repay the loan?

Hope this isn't a ridiculous question, but can you give a loan from yourself to your LLC and have the LLC repay with interest?

They'll see where this money came from and if it came from your friend it better be a gift you don't plan on repaying lol. 

thanks Greg. but the problem comes since we dont have repayment gurantee for the common area development loan ? 

I can across Sherry Lynn at Unique rental  management.

I’m currently looking at two parcels of land in Miami Beach that are very unique.

My numbers are as follows PP: $108,700Downpayment: 20%Interest: 4% on a 30year fixed mortgage Renovations: $36K + $1500 for appliances ARV: $150K (very conservative, a house on the street sold for $165K 2 weeks ago)Estimated rent: $1500 - $1600I am not losing money but my net cashflow will go towards repayment of my credit line used for renovations, so not expecting to make any profits until about year 5

Since if the home is owned free-and-clear (which you mentioned above), and the estate is not settled, you could have creditors popping up out of the woodwork after closing (like un-paid credit cards, gov't entities wanting repayment if they were in certain types of elder care, etc.), that want a slice of that homes equity.

Per the Care act- an individual can now take a withdrawal of up to $100,000 from eligible retirement plans, including 401(k) plans and IRAs in which you don't have to repay the funds.