Insuring the property under your LLC while the loan is still in your personal name can cause issues with your lender.

This is much better than hiring him and issuing a W-2, which would remove access to real estate tax advantages.Avoid Employee Setup: By making him a co-owner instead of a hired worker, you skip payroll tax issues and instead allow him to benefit from pass-through taxation—income and losses from the LLC go directly onto your joint or separate tax returns, depending on how you file.Operating Agreement: Create a clear operating agreement.

Gives tenant chance to note any issues PRIOR to giving them keys and letting them move furniture inPre- Move-out Checklist - prior to tenant leaving, I walk through with them and the move-in checklist and let them know what I am seeing that can be repaired prior to end of lease or risk losing part of security deposit. 

If you want to maximize revenue with the co-living strategy, maybe see if there's anything you can improve on your operation to minimize your issues down the road. 

How are you investors in Houston TX dealing with this issue?

Do you think this issue is specific to banking services or what do you think is the root cause?

I have used Decas for a couple of years without issues.

.: Quote from @KC Ushijima: It kind of sounds like a subject to deal if your friend would take over the mortgage payments.The Quit Claim Deed could be an issue if the seller is unscrupulous [not reachable for the foreseeable future]. 

I continue to reach out to Tyler Powell and have not had any contact with him since November, and Nick Vittardi has not responded to me since February.I have since tried to resolve the issue amicably with the seller and his agent as they seem reasonable but they have since gone silent for the past month.

not really sure of what the specific issue is but yes, you can do that, just make sure the fabric you use is water permeable you want the ground water to still get through to the tree roots.