@Jessica Seppo,Many people take the cost of an LLC and funnel it towards more insurance and an umbrella policy.

To qualify for a loan, focus on having a credit score of at least 620 (or 580 for FHA loans), keeping your total monthly debt under 43% of your income, and saving enough for a down payment and closing costs—about 5-10% of the home's price in total.

In short, I can afford the additional $1100/mo cost of a second house, even until I rent it out.I have around $35K in HYSA and emergency funds that I could use for a down payment, but that's less than 20% which would be required for a conventional loan, assuming full purchase price.

However, our tenant turned out to be problematic—late payments, issues that led to an eviction, and additional repair costs before we could relist the property for sale.Now, after months of making mortgage payments out of pocket, we finally have an offer.

Are there other, more cost-effective alternatives to gain similar support and knowledge?

While under contract, we perform due diligence and there will be some soft costs incurred. 

If you have a good FICO, a decent down payment and closing costs, go ahead an do the first one. 

Refinancing has more nuances than it seems, and so do closing costs.

Those situations go bad more often than not, costing you money and the friendship.

And, capitalism works to lower housing prices when this process is allowed to go into effect.