Our client said that he has to redesign his parking and loses XXX stalls, which means his parking would be too low for the zoning code allowed medical office use if he wanted to implement that. 

Please look at this list to see what lawsuits were prevented by LLcs.

It keeps projects on track and prevents cash flow headaches.

It prevents you from dipping into your W-2 income more than you planned.* Scalability: Stronger cash flow makes it easier to qualify for future financing, should you decide to expand beyond the 5 properties.* Exit Strategy: If life circumstances change and you want/need to sell or stop aggressively paying down debt, cash flow ensures the properties are still performing investments on their own.* COC Return: Even if your focus is principal paydown, measuring cash-on-cash return helps you understand how efficiently your capital is working compared to other investment options.So, while your strategy works, cash flow shouldn’t be ignored—it’s not just about profit, but about protecting your investment and keeping options open.

He has owned in the past and has cash set aside for us to invest, but when we spoke with a DSCR lender, they noted his arrangement prevented us from initiating the purchase through our LLC and instead that I would need to do so and then transfer the property into it later.

This will prevent you from having so many surprises. 

Regarding multifamily rental (2-4) investing, you should think about what strategy you want to implement: house hacking, STR, MTR, LTR, BRRR, etc.

"Preventive maintenance is your cheapest insurance" - love this!!

Tiffany, a lot comes to mind, the biggest thing for me is how to prevent it and how did this happen, but without having a back and forth with you (DM me and we can do a Zoom for free of course, if you want bc I love DIY property management), I'll just throw some things out here:- I recommend having a flat late fee and a daily reoccurring fee (this needs to be in your lease and permissible in your state/city).- Have a conversation and be the concerned helpful person with no agenda.

Essentially this protects both parties because it ensures that the seller doesn't collect the money then run off without actually deeding the property, or conversely, it prevents the buyer from having the property deeded to them before submitting payment and then running off with the property without actually paying for it.Drafting and Recording of documents such as deeds is also necessary because it's the preparation and execution of the deed that actually transfers title from the seller to the buyer.