But do you due diligence, protect yourself and be prepared in case it happens.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

Forming an LLC for your rental property can offer liability protection, but no real tax benefit.

This is a passive way of earning with real estate-based security, protection and insurance.

It is a protected class in several states...

Seller should record their lien against the property, you both should have an attorney review to make sure all interests are property documented and protected, and i think everyone is in a good place. as far as evicting tenants... this is up to what you and the seller can negotiate. i would still be putting on the same contingencies - appraisal, inspection... know what you're buying. don't get blinded by the seller-finance piece. 

As long as we keep any of the protected classes out of the discussion, is it ok?

They know the law inside-out and protect you from bad renters or unique situations like the COVID eviction moratorium. 

I email all my documents as pdfs with password protection, then I text the passwords to the person receiving them. 

There are ways to mitigate the costs and protect yourself to the extent possible.