Given your financial constraints and the property's ineligibility for historic tax credits, this approach allows for reinvestment into assets more aligned with retirement account rules.For future real estate investments, you don't need an LLC for tax reasons.

In the meantime, focus on building your credit, saving for a down payment, and soaking up as much knowledge as you can.

For me, I am a little hesitant because I would be in a situation where I would be trying to secure traditional lending (which should be very feasible given credit scores & what $$ amount I am pre-approved up to from my banks), meaning that I assume I would be forced into using my first-time homebuyer loan incentives.

There's a decent chance that if you have good credit and improve your DTI over the next year, you can put a Heloc on the property while it's still your primary to unlock some of that equity if needed.

I consulted with a real estate lawyer a few times this year who said it's very hard to sue for negligence and they advised against taking legal action, especially since the property manager at least followed through on the eviction and repairs.I've now asked the property management company to apply a $4k credit for all the challenges I've had working with them.

referral=UZXgWmHappy to help review settings or share unused property assessment credits if needed!

So the seller cannot go get another loan for a car, house, apartment, etc. so it damages their credit by stretching them too thin.Am I missing something? 

You do need to have steady employment, decent credit, and not be drowning in debt.

They wanted $1.2M to payoff  maturing HML on a $2.5M property. their credit was 580 and we told them we would not give you a loan but we would buy the property from you for $1.2M, provide you with a 12 month lease with an option to buy. in 12 months you either buy it or its ours. 

INstead of just saying "no" we asked them to check with their credit card company if they offer travel insurance yada yada.. we got a 5 star review form them without giving a refund.