If you have any legal questions, contracts, financing, etc. 

Go on the offensive and find her responsible, and pursue legal recourse.

You can get significant savings for legal and compliance costs in addition to providing one PPM and one K-1 to your investors regardless of how many deals they invest in. 

She likely can turn to legal assistance for tenants rights, especially if she’s taking care of a handicapped son, so be prepared for resistance.

Sometimes these insurance contracts come in legal sized paper- possibly a harbinger of what you'll need to do to collect fairly from them, But always expect them to perform completely on the things which are in their financial favor.

Probably because someone on BP or YouTube suggested it without any evidence to back their claim.An LLC is useful for two things: anonymity and legal protection.

We do plan to meet with a legal expert but just wanted to sort of understand what we should be doing in general.  

@Karl Kauper going to guess your current PMC:1) Is having too many tenant nonpayment issues for your likingAnd/or2) Refusing to share their background checks with you, so you can make your own approval decisions to address #1 above.Several factors may be at play here that you may want to consider before being trigger-happy:1) For several legal and contractual reasons, it's pretty much NOT possible for a PMC to share background checks with an owner. 2) What Class of property do you own?

According to my non-legal, plain-English read, this is nonsensical and ambiguous.

My advise (not legal advice as I am NOT an attorney ) is just purchase the property SUBJECT TO the existing mortgage.