Not sure i agree about them adding for legal hoops though.

Be prepared for some potential tension during the conversation, and consider that if this situation escalates or becomes contentious, you may need legal representation.

The sellers are good family friends, so not worried about lease backs etc and the chance it becomes a legal battle.

If a legal issue arises with Property 1, only that property’s assets would be at risk, protecting the equity in Property 2 and any other properties you may own.Asset Isolation: Isolating each property in its own LLC helps protect your assets from creditors or lawsuits targeting a specific property, thereby providing a more robust legal shield.Financial Management and Bookkeeping:Regarding your concern about financial management and the practicality of handling multiple LLCs:Centralized Banking: Using a holding company’s business account and credit card can simplify your bookkeeping.

or “Is it legal to build a treehouse on a duplex roof?”

If i decide yes, how can i lock myself down in addition to security systems, cameras, legal self defense, and anti-theft door/window stoppers?

I have a rental with ceiling fans in every room, I am afraid if they start making noise, or don't produce enough air for tenants liking I will get complaints and they will ask me to replace them. 

FYI, you must do this before any prospective legal action.

Other than the inspection report, there aren't a lot of reasons why buyers change their minds after submitting an offer.Since these are legally binding contracts, you could be opening yourself up to be liable for losing your hand money and even paying the full purchase price of the contract you sign.

Hire competent, experienced legal counsel.