I choose that market due to affordability, potential cashflow and cash on cash return. 

When an individual with an LLC is sued, the lawsuit against them individually is often due to actions they took individually, NOT as an officer or member of the LLC.  

@Jake Santos don’t have experience renting out but have plenty of expertise from a tax perspective in regards to this.

My question is this, can I deduct my passive losses that occurred in 2017 on my 2017 taxes or does it get rolled over to 2018 because my income is too high?

Given your scenario, you might recover more capital with DSCR due to the higher rental income, but as other lenders have advised, your max will be 75-80 LTV.Hope this helps!

Talk to lender to find out how to transfer assets without triggering due on sale clause.Did I get all that right?

Often times when a builder/buyer moves too fast, or is too busy and overlooks a key piece of due diligence, the unethical ones will try the "scorched earth" method and blame everyone but themselves, even when they know it was their own mistake, and they'll see if they can scare you, the seller, the title company et al into paying damages/fixing their problem. 

Bob doesn't realize his payment didn't clear until he gets his statement, he is in default, Joe calls the note due just to get at Bob and knowing Bob can't pay it off.

I want to make sure I am doing my due diligence on each property.This is a question for your real estate agent!

I am only familiar with Texas and while there is sometimes limited flexibility it’s basically 100% due at sale.