Additional paperwork and hassle Takes money to set up, maintain, and to file taxes (around $2,000)Alternatives to an LLCInsurance – get enough and talk to an insurance agent and tell them your fearsLeverage – if you have a LOT of leverage in the deal, the other lawyer won't want to come after you (no money) You can always set up an LLC later when you start to build real wealth!

A lot of folks are finding that these are perfectly acceptable alternatives given that returns are getting compressed in a lot of areas like yours. 

@Jordan GhasemiI agree with IRR being an alternative to CoC, in fact it is a much better alternative.The four sources of return in rental real estate:1- Cash flow2- Loan paydown3- Appreciation in value4- Tax savings- CoC (Cash on Cash) is a measure of net return generated by TWO sources (i.e.

The reason I've decided to post more in this forum page is to at least give out an alternative perspective and flash these warning signs I see ahead.

Shared not to self promote but to provide an alternative to 50cents skip tracing.

Do you have an alternate exit strategy that cash flows besides Airbnb?

Alternately, hard money lenders understand private loans and have vetted paperwork.

.- A door to allow access from the main unit to the rental internally [ this is largely optional, I might consider just covering it up with board if thats a cheaper alternative.]- A kitchenette.

@Tammy SkeathYes, co-signers are a good alternative to accepting a tenant.  

Focusing on desired appreciation and time frame first might be helpful -how much ideally do you want to appreciate and when do you want to sell you'll need this to be able to calculate your Net Present Value to  make sure that you wouldn't be better off with alternative asset classes etc. - in beginning to narrow it down to an actionable plan - then - once you have an idea you could think about risk you're willing to tolerate and then how involved or not you would want to be in managing the asset/s.