I also need to go about it in a legally acceptable way so that I am minimizing my risk of lawsuits and liens.

With a private room the costs are minimal to get started to test and see if it works then you can improve it if you’re getting guests.

Temporary periods of inactivity while awaiting materials delivery, lack of rain for roofing, etc. do not interrupt possession. 

I need help/answersI don't have much money, but I may (for investment(s) ) be able to get private money and borrow from people I know...I want to put together the property(s)/lot(s) under some sort of minimal liability LLC or Trust, because even though I don't have much to lose...

I'm an attorney and handle the legal side with minimal tax advice--though being an investor, I'm certainly aware of tax implications of any structure I work with.

@Kole KingslienGeneral rule:He should get reasonable w2 income as well as profit by way of dividends to minimize SE taxes.

Unit requires minimal rehab work (cleaning, new paint).

., you'll have to deal with expensive repairs while hoping your home's appreciation will come out positive.If the market corrects and you have to hold on to the property longer, you could be losing money from having to handle repairs while you wait for the home price to go up.Forced appreciation through rehab is your way to minimize these unexpected costs, not speculative appreciation.

That rate would be fine as the cost would be minimal compared to the larger amount I'm trying to collect.

Cost would be minimal to level the house on the foundation compared to leveling the foundation.