Land Contracts Startup

[Travis Michael]

Here's the situation:

I'm a 24 yr old, recent college graduate who landed my first professional job. I have put away around 10k for my first investment property. A close family friend has agreed to sell me a duplex located within a 1/4 mile of a large university in my city.

The property: Duplex one bedroom renting for $350 a month and the other unit being a 2 bedroom for $450 AS IS.
The current owner lives over an hour away and bought the property to give her 2 sons a place to live while going to school. They both have recently graduated and moved on. Now that the property has served it's purpose they are eager to sell and knowing I was actively looking for my first deal I was the first call.
I've gotten comps in the area and I'm getting the property about 20% lower than what the neighborhood average is.

My plan: At this time I have practically no bills and I was going to invest my 10k into upgrading the units to get more cashflow and pay off the property more quickly while supplementing that income with my own. Realistically other units in the area rent for 600 - 700 for a 2 bedroom. 400- 450 for a one bedroom. If I could stay in that price range and provide and extra 10k a year to pay off the property within a maximum 5 years. (Note: Units are within walking distance to the university and also offer off street parking which is an issue in that area.)

The deal: The owner, being a close family friend, has offered to finance the deal for me practically with no interest as long as I manage the property, seeing as her and her husband live an hour away.

Questions I have:
1. Should I enter into this deal myself or would it be benefical later to create an LLC ?

2. Is it possible to have a land contract for a certain price and when the deal is complete and the title work is done list a lower selling price to save my family friend from capital gain taxes ?

3. Anything in general I should be aware of doing this type of deal?