Get that cluttered fairy tale stuff out of your mind and stop letting it distract you from all that matters, your 1 THING. 

Stop the bleeding and hire a professional.

If that's stopping you from entering REI, then you really need to analyze what your priorities are.

2) Assuming I can proceed and put the home under an LLC of some sort, what would stop the tenant from just checking the county tax records and finding out who is listed as the last purchaser, and from there come after my family? 

I din't have enough capital to start on my own, so I partnered up and did a few joint ventures, sprinkled in some seller financing, and then syndicated a couple of deals, only to return to joint ventures.Pick a strategy, then a market, then start to network with all the brokers in the market. $400k is plenty to get started.Gino

Hillsboro, Oregon is a stopping point for many Submarine Cables of Fiber Optic bundles that come from around the world on the ocean floor.

That guy got caught building a garage without a permit in March 1996 and had a stop work order issued. 

Best of luck with your real estate ventures, and I’m here if you need assistance!

Have you dealt with the scenario where the Tennant stops paying, and they're doing it in spite?

I would venture to guess many RE agents would disagree with you on that.