I think you should have the Open House and expose the property to as many people as possible.

the activity might be illegal, the taking of equity of those in pre or foreclosure can leave you exposed to legal action.I would do some more research 

Should they need a second day and potential rain is in the forecast, they will put tarps on any exposed plywood or tar paper. $4500 is not much, depending on roof size.

Apparently someone put a propane style WH in before.

But, if the property were owned by an LLC (properly filed and maintained), your risk exposure would be insulated by the protection of the entity, leaving only the assets owned by the LLC (as opposed to all of your personal assets) exposed to potential lawsuits and judgments.

Long term I would like a diversified portfolio that includes rentals as well.I have been exposed to real estate investing through various family members who have rental properties.

Any seller who is selling in an LLC shouldn't agree to the verbiage your attorney is pushing, it exposes them to enormous risk.

The members of an LLC are issued K-1 Form and have to pay taxes on all profits as though it were income, which could expose the owners to high employment taxes.

Also, before working with fiberglass coat exposed skin with baby powder it helps avoid fiberglass sticking to you.

Furthermore, we don't feel comfortable accepting liability after one of the partners told us they would not be properly capping off exposed live electrical wires in the wall even though we advised them it is a hazard and you cannot just "plaster over it" as he said he would do.