She's based out of New Hampshire and called it the "Alabama of the Northeast," but with way less social programs.

Not sure if interesting, but my buddy just launched a tool to help find off market properties across the US based on tax delinquencies, probate, pre-foreclosures...etc.

Following - I'm based in California

In all markets, basing these expenses as a percentage of rent is not logical. 

He also has no driver's license, but he does have an out of state ID.I get a bad feeling that this could turn out bad for me and feel I can decline him legally based on him not having rental references, but on the other hand I think that maybe I could either offer him a month-to-month lease with a guarantee I don't raise rent for 12 months, or require a double deposit. 

We are based in NY, mainly looking to invest in the Hudson Valley area.

The wise move would be to get on the phone with him and ask him that question directly, and if the answer is complicated write the answer down and repeat it to him ensuring that you understand it.Good Luck!

It's interesting what people will do in acts of desparation.In my experience, lenders (specifically private lenders) will do what they can to work with a borrower to avoid foreclosure, which is a costly endeavor for the lender and requires time to process, usually months and months, depending on your state.Also, while an LLC is often considered a safeguard to protect personal assets, a lender using an LLC for multiple loans may have a substantial value to their LLC, which could all be at risk.Finally, if the wrongful foreclosure suit is legitimate and based on an error by the lender themselves, an attorney could logically sue both the LLC and the individual.

I personally view it as a liability protection issue and base the decision on my costs to have the LLC versus the equity contained within.

The ownership and use periods do not need to be consecutive.Exceptions to the Two-Year Rule:If you're selling due to a change in employment, health reasons, or other unforeseen circumstances, you may be eligible for a reduced exclusion.In cases of unforeseen circumstances, the IRS may prorate the exclusion based on the time you spent in the home.In your situation, if you sell the property before meeting the two-year ownership and use requirement, you may not qualify for the full exclusion.