And the plan is to convert an existing Airbnb I own (and have run as an Airbnb since 2019) to PadSplit.

I purchased existing STRs that cash flow! 

Quote from @Sean Gallagher: If there is an existing lease, you must honor it.

Quote from @Sami Gren: I start by making the original tenant fill out a form requesting to add a new renter, and they pay me a $50 processing fee (I charge a $50 fee any time I make changes to an existing lease). 

So far, nothing.The point is that I believe people spend a lot of money, time, and effort protecting themselves against a non-existent threat.

It’s a good idea to have both for peace of mind!

Paying off the mortgage can provide peace of mind and simplify retirement, while keeping the debt allows you to leverage your funds for higher returns through investments.

In other words, in the eyes of the IRS, the LLC would be non-existent. 

Encourages Larger Investments: By offering higher returns at higher tiers, you incentivize investors to allocate more capital to your projects.Builds Long-Term Relationships: Investors appreciate being rewarded for deeper commitments, which helps foster trust and repeat business.Scales with Your Business: This structure can align with the complexity or scale of your projects, ensuring that you have the resources you need while staying competitive in the market.Key Benefits to InvestorsSecurity: Deals can be secured by tangible assets, such as a deed of trust or promissory note, providing peace of mind.Flexibility: Payments can be structured to suit the investor’s needs—monthly, quarterly, or upon project completion.Attractive Returns: With returns starting at 15%, investors often see better yields than traditional investment vehicles, like stocks or mutual funds.How We’ve Implemented ThisThis structure works particularly well for our large renovation or development projects where multiple investors may be involved.

A warranty can bring peace of mind, especially if the tenant values quality and reliability.Here’s our rule of thumb:For budget-friendly rehabs: Used appliances from a reputable source can be a smart choice.