Thanks Nick and ANTI, I didn't really consider an S-corp but now I will!

If it's smart, I would also consider an 80/10/10 scenario with a piggy-back loan to help mitigate having to pay PMI.Investment-wise, I think the smartest thing to do is get land and put a modular home on it.

I suggested he get an attorney involved and consider an eviction or look into maybe getting it judged abandoned to see if he can get it back that way.Now this is all what he has told me. 

If the multifamily property is in good shape, consider an FHA mortgage with 3.5% down.  

The harsh reality is that your ten percent is not going to get you very far in commercial property so you may want to consider an office condo - that's how I started - or just run a search on LoopNet for properties you can afford and go after them.

My first RE purchase was a condo, here are some things to consider:-An SFR will usually appreciate better than a condo.

If you still want to consider an HOA property, check out BP podcast #244 with Linda Weygant.

We never (knock on wood) get temperatures that high, but if we did, I would consider an option like purchasing a few of the portable units, but only installing them during those heat waves.

May investors with an 8 unit building will consider an Umbrella over that location.# 2 & 3 are really personal preference and your specific risk tolerance.#4 - I just quoted some 8 units for 2 separate investors and the quotes are coming in just under $2k per year for Replacement Cost and $1M General Liability 

Consider an option though that will also include the added perk of allowing your tenant's on-time rent payments to be reported to the major credit bureaus; this creates just added incentive/point of positive reinforcement to get them to make those payments on time and transition to a system that is easier for you.