They have a MAJOR conflict of interest - they don't get paid until they place a tenant, yet they have ZERO liability for the performance of that tenant.If you hire an agent, you better make sure you retain control over screening & approval.

In Joes model, there is infinite leverage and therefore unlimited liability.

You should start at municipality,with title insurance claim, then try working with seller directly.After exhausting these I would be sitting down with an attorney and sharing the fully paper trail for closing and the follow up with each of the three parties above to file a suit to let the courts figure out exactly where liability rests.

Been looking at a structure which will be optimal for having a portfolio of rental properties, financial investments, and all the other general life stuff, which will assist in asset protection, as well as tax liability etc.Thoughts on this?

It's advisable to work with a real estate attorney who is familiar with subject-to transactions to navigate any legal complexities.Risk and Liability: As the original borrower, you retain liability for the mortgage even after selling the property "subject to."

Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

Just don’t get suckered into these shady turnkey companies that make you pay over ARV for shotty rehab and tenants that are liabilities. 

Given your numbers, it seems this may offset most or all of your tax liability and make it easier for you to utilize a new entity structure.

Too much liability for 7k.

So long as each LLC does not own more than two residential dwelling properties, or more than four dwelling units total, the LLC may require two month’s rent as security deposit.Although elsewhere I have expressed the opinion that placing each rental unit into its own LLC is maybe not necessary for limiting liability, if an investor is subject to the new security deposit limitations, the idea of limiting the number of dwelling units in any LLC to four rental units, now has an added benefit of allowing the LLC to require higher security deposits.Below is the pertinent portion of the statute:(4) (A) Notwithstanding paragraph (1), a landlord may not demand or receive security, however denominated, in an amount or value in excess of an amount equal to two months’ rent, in addition to any rent for the first month paid on or before initial occupancy if the landlord meets both of the following requirements:(i) The landlord is a natural person or a limited liability company in which all members are natural persons.