They indicated that there were no oil tanks on the property. 

I know you mentioned that the tenants pay water and sewer, does this also indicate that these services are provided by local/city utilities?

Try to have the contractors provide you an updated invoice indicating paid in full/ work completed.  

@Joseph LuceI agree with @Tim Gordon for the reasons he indicated. 

Don't spend every dollar you have in property one, if you can help it.As @Michael Lee indicated, if you have 400k sitting around, your options drastically change.

Not sure what your intentions are as you didn't indicate if this is a rental, flip or primary residence. 

If you are a licensed real estate agent as you seem to have indicated, it should just come to you through your brokerage.

Danielle:In your story you seem to indicate that you need the money to invest more than the large home. 

@Austin Hendrickson I have consulted with tax attorney's indicating that the investment does not have to be capital gains but can be straight contributions. 

The reason that the opinions are 50/50 is because statistics show that about 50% of investors are using a LLC, 50% not.To me this would indicate that it is not necessary otherwise by now the number using a LLC would be approaching the 100% mark.