From a liability standpoint, it usually makes more sense to reorganize and isolate the commercial building into its own LLC, with its own insurance rather than dissolving everything or changing ownership just to avoid a partnership return. 

Think less isolated attractions, more intentional ecosystem.The economics are straightforward.

More often than people think, and in my experience it’s usually not “financing speed” in isolation, it’s financing readiness.Most deals that die from timing issues fail because one of these wasn’t locked in before the offer went hard:Borrower docs not clean or consistentEntity structure changing mid-dealAppraisal expectations not aligned with the lender’s methodologyExit strategy not clearly underwritten (refi vs sale vs hold)When we’re moving fast, the capital stack is already decided before the contract is signed.

In most cases, true non-recourse options here come down to how the LLC is structured, who’s guaranteeing (if anyone), and whether the IRA member can be isolated from recourse entirely.I’ve seen this work in limited scenarios, but it usually requires very specific lender parameters.

It was the lack of alignment across the process.Professional investors don’t evaluate properties in isolation.

Is it isolated to one area or consistent throughout the house?

This isn’t isolated.

This is a documented pattern of non-performance, not an isolated incident.

In practice, it’s usually not one thing in isolation, it’s the combination.Appraisals have tightened, especially on value-add where post-reno rent growth is assumed.

Documentation is everythingStrong agreement on the importance of:Move-in photos (date/time stamped)Move-out photosMove-in inventory/checklist completed promptlyClear, itemized deductions tied to actual repair costSeveral noted that good documentation dramatically reduces disputes, even when charging.Repeated Best Practices That Clearly WorkSet expectations early (this came up a lot)Multiple people described this as a game-changer:Define wear vs damage in the leaseRequire move-in condition forms (often within 7–10 days)“Plan for the divorce before the wedding”This reframes the deposit as:Protection against damage — not a repainting fund.Don’t let tenants do repairsSeveral landlords:Tell tenants not to patch holes or fix drywallPrefer to handle it themselves to avoid bad repairsOnly charge when damage is truly extremeBudget for paint and light spackle every turnA very consistent message:You should expect paint and minor drywall work every turnoverDeposits are not meant to cover routine refresh costsOwners need to understand this upfront to avoid frustrationContext Factors People Consider (but don’t abuse)Mentioned multiple times:Length of tenancyNumber and age of occupantsOverall condition of the unitWhether damage is isolated or widespreadBut even with context, the dominant rule is still:Would this look fair to a neutral third party?