He knows the loan will pay and they won't default because he knows they're solid. 

https://app.tango.us/app/workflow/BiggerPockets-free-Short-T...The only way to truly stay up to date on your local rules is to pay attention to your local county/city council meetings and how you can participate.

Who pays when the resident breaks the agreement and quits paying? 

I would stay away from section 8, pull credit and background, and call referrals, and look at pay stubs for everyone who applies.

The only purpose of the account would be to collect payments and pay bills like taxes and insurance on assets held by the LLC.

I was studying the market and my rent will be just enough to cover the mortgage and HOA fee now I might to pay out of pocket for insurance but don't want to sell it yet because the area is growing and might have good appreciation in the years that follow.

Selling to you could begin to feel like an appealing alternative to dealing with the hassle of re-renting the home.If they’re open to selling, you can share what you’d be willing to pay based on your research and pre-approval.

Please don't believe the hype of these gurus and for the love of god do not pay for their courses.

Location and paying attention to Nathan's points above about the immediate area are more important.

It is a small town, definitely a tertiary market right now, but that is where opportunity is going to be found.I think LTR, in the right location, can provide enough revenue annually to cover all holding and leverage costs while the resident pays down the principle and the demand in the city sustains slow and steady appreciation.