I prefer Texas as I have my Audioprosthologist license (hearing instrument specialist) license there.I'm also considering multifamily options such as 2, 3, 4-plexes etc.We owned a small property in California 12 years ago with several little bungelow type dwellings on it.  

I have an oppt. will not/cannot pass.Take for example a quote (by my memory) by: Robert Kyosaki:"Their are investment instruments offered to the rich which surpass and break the rules of standard mediocre investments."

The Land Trust is a terrific instrument- if only title insurers would participate.

With my current level of knowledge and comfort I'd feel better going at this with someone more experienced in the driver seat while i sat in on the deal to use it as an education instrument.

It would actually fall under the more beneficial rules of sec 121 and if you've lived in the house for 2 out of the previous 5 year period then you can sell and take the first 250K (500K if married) in profit tax free.If you are truly talking about a debt instrument on an investment property and it is attached to the property in a mortgage then when you sell the property it would be paid off as a recorded lien against the property.  

When you buy the loan, you don't own the real property, so you can't perfect an instrument against the subject property in this structure.

decide if you really really want to be a landlord for the rest of your life.or if you would like to look at other financial instruments that will return as much with much less work.or buy a business that makes any of the standard investments pale .. if your going to put time and energy into something maybe owning a cool little business that makes you 100k or more a year would be fun and profitable.

A Warranty Deed is an instrument used to convey title to real property from the Owner (Grantor) to the Buyer (Grantee).  

At what point does an LLC or other instrument get formed?  

Your findings that you discover from your research will be instrumental in you starting out in investing.