It’s a good idea to confirm you have a path to record title in a way that’s financeable, even though this isn’t a standard fee-simple sale.The big question is whether it’s reasonable to pay a market-rate price when you’re not actually scooping up the land.

(120k total)2nd house we are making a profit of 120k but this  "profit" would literally pay us back for our initial investments into our LLC together we used on the first house ...anyone have any idea how the gov.

I'd be happy to share more ideas.

I have no idea what the breakdown of each item is, but the overall cost is reasonable. 

I have a good FT job in education administration, but I want to retire asap, focusing on RE (so, not really retiring, but you get the idea).

There are some “hot button” topics on BP which bring out “knee jerk” reactions and sometimes incorrect assumptions from some of us long time and frequent participants.  

The second argument is that sellers often have no idea what they’re getting themselves into; that is liability, in a subject to transaction.

All thoughts and ideas are welcome.

I have many questions about this topic - moving from self-managed to PM - I'll post something separately on this topic. 

With investor's properties, depend on how risk averse they are, I fall under either just follow their criteria or maybe coach them my insight if I feel they are open to ideas.