This is not the same as a conventional loan where estimates are many pages, sent before day three, resent when you lock, and again before closing to protect a consumer who probably only does a mortgage loan a couple times in their life.Hard money and business purpose loans send an email term sheet which generally tells you the rate and points which can change after the appraisal and details become real. 

What kind of due diligence should I be doing to protect myself?

Won't my tenants' renters insurance company just go after me/my insurance?Example: Tenant experiences a loss due to some house issue. Let's say that a pipe bursts and destroys their laptop. Or they trip and fall becau...

Since I vetted the tenants and regularly did property inspections we were okay with not having the extra protection of having it in an LLC.

Should I set up an LLC for Airbnb for protection?

You would be protected with an inspection and financing contingency in the contract. 

@Sandeep Shukla how much time do you have to manage AND learn:1) Fair Housing laws2) Fair Credit Reporting Act3) Consumer Privacy Protection laws4) Local rental ordinances5) State eviction laws and procedures6) Etc...Everyone thinks property management is easy until something goes wrong...

Both my tenants and I have a protective (restraining) order against him.

I put 15% down for our deal, and it gives us more flexibility for the future- The template for the Contract for Deed is the general Contract for Deed for the state of MN (where I reside) - We are getting title insurance and ordered a title commitment to confirm there are no liens or claims on the property I feel like I've educated myself on different seller financing, and understand Contract for Deed protects the seller more than the buyer, so I understand why the seller is going that route, especially if selling Contract for Deeds is how they do their business.

I believe there is a fee to operate a business in Tennessee but would it be worth it to protect myself?