I agree that having clear communications with your realtor on a regular basis is a good idea.

It seems like a truly unsecured note would have been fine. but the lender might have felt seller could still somehow had claim on the property and were not sure of how to verify implications of the note and did not want to mess with it. 

If there were any potential baggage, I don't think they would be able to do anything against a terminated LLC.BUT, in a scenario where the LLC was sold to new Owners and the baggage made a claim on that LLC, the new owners of that LLC may want to sue Kristen personally if it was for something like Gross Negligence?

I think the real rub from some comes from a person that raised money for a deal and then claims to own 250 units, when in fact they raised $250k out of $12mm.

Worst case scenario you can still either give the house back, sell it, try to refinance it, or find hard money as a stopgap.Insurance:   Since the insurance has the original owners name on file, wouldn't any check that results from a claim be sent to them instead of you? 

It seems hard for Venmo to reverse a transaction but I worry that they could if someone claimed I was doing business and asked the tenant to pay that way. 

The cost for these loans is a bit higher than regular conventional mortgages.  

We never got to see the bathroom as the rough looking guy claimed someone was there.

And, despite their claims that they have an office in Indy, they in fact do not. 

That lawsuit is a claim for fraud, and that’s what fraud typically is...a misunderstanding and someone being “injured” and wanting to hold the other responsible for it.