Once you get that, sign it and send it back, then request their financials and documents pertaining to the sale. 

It will be great when fully legal!

I have done a formal inspection with the lease but I give the tenant a checklist to fill out with the least when they move in so they can document anything that is broken or needs repair.

I think this is a State specific legal ruling in WI if I recall correctly.

I’m worried about legal/insurance exposure and also just generally annoyed at all the foot traffic in the u it

Just make sure you document everything properly, and once the property is in your LLC, it can operate as you described.As for your concern about taxes, keeping it under an LLC is a smart move for liability protection and managing income.

You just have to use custom documents. 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

If you want to email me, I can send you a document with the bullet points.

google All inclusive Deed of Trust state of CA.. that will give you a really good description and if you can find the actual deed of trust to read its a great wrap document .. in practice   you have a current 100K loan at 8%  you sell by owner and take a 125k note at 9%  the 125k wraps the 100k.. you continue to pay on the 100k the while the new owner is paying on the 125k  payment lets say on the 100k are 1k a month the new payment is 1.2k a month you make the 200.00 delta..