Might you be able to implement a house hacking strategy to bring in more to help offset your monthly obligation?

The objective of all investors should still be to operate their business in a manner that prevents GL claims from arising and at minimum to avoid operations that would be deemed an exclusion. 

To prevent this from happening again, we do a six month lease during winter and re-sign a new one-year lease by mid next year so that we don't have this issue in the future.3.

@Chaim Mal Anonymity does not prevent lawsuits.

A quick background check on experience and finances, plus a written plan that spells out roles, helps prevent misunderstandings later.

@Michael OverallQBI number is not some "loss" that you can benefit from.It's simply an FYI number that prevents you from taking a QBI deduction in the future because you had multiple years of prior losses.Short story: you're not missing on anything.

What are ways to prevent this?

Did you have issues despite doing all of those preventative things?

Works OK.Sometimes you can't really prevent those cancellations in within the time limit.What I do is keep a list of inquiries for just in case.

When you’re self-managing, the key is finding a screening service that’s FCRA-compliant, offers direct client support, and values accuracy over speed of results :Full Credit Reports with FICO Scores (soft-pull preferred so it doesn’t impact the applicant’s credit).Nationwide Criminal and Eviction Searches that are manually verified for accuracy.Employment and Income Verification Tools that connect directly to payroll or bank data instead of relying on uploaded documents.Identity Verification Features that confirm facial biometrics and ID authenticity to prevent fraud.You’ll want something that integrates easily with your application workflow — whether you send applicants a link or manually enter their info — and delivers reports within a few hours.Feel free to message me any time if you’d like to chat.