Think of it as a piggy bank: you put money in all the time, but the piggy itself also grows in size over time.

My understanding is the key is to keep separate bank accounts and financial transactions.

@Brandon Weis just an overly conservative bank. 3.5% down with FHA on up to 4 units.

You may be able to get a levy against their bank account or file a wage garnishment without the need for going to collections. 

Many banks handling tax escrow accounts for mortgages have mistakenly thought there was one tax due twice/year or totally missed one of the taxes.Investors should research the SEV and the Non-Homestead property tax millage rates to project what the property taxes will be after adjustment.

I know some mentioned about developing banking relationships and I totally agree with that, so here is what you do. 1) Open a business checking account in the name of your LLC to hold the assets. 2) Deposit your cash into that account to fund the real estate purchases3) After owning for 60-90 days, talk with a local lender about a line of credit against the 2 properties at 60% LTV. 4) After about 30-45 days, have the line open to use if you need that liquidity that you used, but until then you are not paying 7% interest on nothing. 

Will he co-sign on loans from banks or private lenders, or will he just say, call 15 banks?

What it appears matters most is who the issuing bank is. 

Since this is my first go around - I'd really appreciate advice on the following:- any references on lawyers /firms to work with to go through the Barment and foreclosure process without breaking the bank.- Ball park ranges - what can I expect the cost of this process to be?

City National Bank has a $50K grant program for homes in certain neighborhoods.