Here's what I found from the home inspection report the previous investor had done:1) Plumbing outside seems to be ok2) Inspection says Arch Fault Circuit Interrupters need to be added around the house.

The kid broke a corner bead with his knee while running!

That happens when beams need to be added or replaced and one side of the house is sagging lower than the other.

In this scenario you would be adding in a lot more risk, however, so make sure you are in a strong financial position before jumping into real estate.The main problem I have with people using retirement funds for real estate is that is is often done by people with very little or even no real estate experience.

Without that debt, thats millions that would never be added to my net worth. 

@JD Martin  I just got off the phone with my State Senator's office -  They will be adding language to make any "missed payments" permanently forgiven, by force.

Should i get an LLC for the rental property and would this be added tax deductions? 

Once you put out a few really good deals, buyers will be calling you all the time asking to be added to your list.

Because they can be added to virtually any RE so there is nothing special about having one added beyond the construction costs. 

@Mike Imbriglio the lien is for all intents and purposes going to be added to your purchase price, because it is unlikely the seller has the money to pay it off and you can't get clean title without paying off the lien, (that is what its intention was).