The cost of which likely far exceeds the cost of insurance.If you are determined to move forward as you outlined, you form the "manager LLC" first, and then the subsidiaries.

So you will need to set an interest rate closer to market and create appropriate documentation outlining the legalities of the loan.

try to leverage any banking relationship the partners might have,, a banker that has a good relationship with a partner will be more open to working with you,,but as outlined above, they will want to make sure your making money to cover the debt service and that the LP has reserves

For the same capital flow reasons outlined above, most lenders have become investment managers.

We call it a "lease change fee" and its clearly outlined in the lease agreement.

Hey @John Huynh - I think you already got most of your answers above from some savy chicago investors @Brennan Crick, @Paul De Luca, @Tom Casey, and @John Warren.Moral of the story, if you are going to use and occupy a garden or in-law unit properply waterproof it with the suggestions they outlined so you dont have to worry about water issues because they are the worst to deal with.

What I mean by that is you are only as solid as your lease / rental agreement is outlined.

After more research & further consultation with my accountant, the explanation which Brandon Hall outlined pretty much summarized it. 

I didn't realize that I was the type of learner that needed a set outline and guidelines for what to do.  

Next I have a 38 addendum lease (https://www.biggerpockets.com/renewsblog/2015/10/17/38-addendums-battle-ready-lease/) this outlines everything al of my expectations.