While showing one of the newly vacated units to a potential renter, he informed me that he was displaced because of the hurricanes, and that FEMA was providing him with assistance for moving, including paying his security deposit, rent, and moving costs.

Can you provide some links to threads where seasoned investors are negative about notes?

Basically I'm wondering if we should start our own LLC (owning it ourselves, "hiring" out the construction to his other LLC to avoid layering), or can I have his company get the loan and I just sign something showing that I'm providing the cash, am on the hook for the loan, etc? 

@Jeet Sangha No, it is several insurance companies that are not providing insurance in the whole state of CA.

@Mindy RosscupThe knowledge you gain by studying and taking the test to become a RE agent.

Who provided you with the reno budget and do you know if its a fair price?

Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights.

Your best path is to work through your contingencies, provide loan commitment asap and then ask the seller.

You will need to provide a $5000 deposit for each property you wish to bid on. 

It provides the least amount out of pocket to acquire properties.