to protect before it makes sense to spend that money - compare that with how much you spend in annual insurance for the same property/equity (on the same FEAR principles, just in case your property might burn down).Again, this is a simplified rule of thumb, as there is a lot more to the LLC question - when to do it, how to do it, current mortgage, proper transfer to preserve title insurance chain, DOS, future financing, management, distribution of properties per entity, insurance, partners, etc. - stuff barely touched in current thread.There is no one-size-fits-all - the risk threshold is a subjective measure particular to each individual.

@Roy Means The interest Rate being charged is an annual rate.

It's worth roughly $1.6 million and cash flows $8k a month which comes out to an annual return of 6%.

At my level we have a 4 digit annual education budget. 

There are a lot of great monthly, quarterly, biannual, and annual real estate market reports are there.

Most successful builder developers make that amount annually and or far more. but generally its appreciation  like you did timing ATL correctly.. or its value add.. or its selling your business you started from ground up..  

So here are the numbers:We are working on getting financing for the property for about 80k and then get a second for about 20k, which would probably leave us about 5k in to the property.Rents - $1977Mortgage (80k at 5.5% for 20 years) $550Taxes and insurance $110Average utilities ( I pay a portion since some are on the same meters) $1202nd position passive note investor (at 10%) $167Cap X and maintenance $150Monthly cash flow = $880 split with a partner or $440 each.ROI = 880 x 12 = 10,560/5000 = 211% annually.

Considering these will be short term, 3-6 months, are you calculating a standard annual rate and then dividing by the number months the money was actually loaned and paying out that way?

At the current monthly rent and my offer price cap rate would be around 12% with a COC ROI around 20-23% generating an annual cash flow of around $25k after expenses.

You can find them at www.biggerpockets.com/llforms and they are also available as a perk of the Annual Pro membership.