Which is more likely to occur.  1)  The bank calling a loan due on sale for transferring to an LLC, or 2) A landlord being sued and judgment entered in excess of my liability limits (500,000 per property, 1 million umbrella)?

As an installment sale, they will establish an equitable interest in the property, your idea of simply evict and repeat is old school now, it requires a foreclosure and you may have to sell and allow them to redeem excess amounts from the sale, see your attorney. 9.  

Remember, most other countries don't have real estate markets fuelled by low interest rates and excessive debt.  

In other words, Grandpa purposely didn't deal with the mortgage lien on the property as grandpa was in fact the mortgagee which by causing a default benefits his personal interest as the mortgagee by creating a barrier to reinstatement for lack of debt service and the excessive accrued interest.  

The new mortgage will add to the debt part of the debt to income ratio, so if you dont have excess income to offset that debt, you may exceed the ratio limits.I like Larry have history of rental income, so it can be included in our income, and the income of future purchases.  

We do have some liquid funds to buy properties and we also have in excess of $700,000 in 401k from previous employers to be able to set up a self directed IRA or 401k.

For larger projects with capital needs in excess of $1M the way to raise money probably won't change materially until the accredited investor revision is revised.  

Just a thought...when I'm looking at properties, excess land around the building is a negative for me.  

One of the rooms they painted had 14 screws in the wall--very excessive.

Brandon Johnson If Foremost won't take it you will likely need to go to the Excess and Surplus lines market; which has companies that will insure high risk.