I was given the terms qualifying and disqualifying and wasn't real clear on the distinction aside from your family/friends couldn't live there.With that being said, I would have to do this property the "old fashion" way and be subjected to paying taxes.

That is a very big distinction from how much you can afford for a down payment.

1) Don't buy 2nd's unless you know what you're doing (which you probably don't).2) Don't forget to check for all the other liens that might stay with the property, but do make distinctions between liens that stay with the property and liens that don't.3) Don't by sight unseen unless you're trying to place a ridiculous amount of capital and you can make it up on volume.4) Don't buy without determining occupancy status and the "temperature" of the occupants.5) If the guys that show up every day are bidding on something, you probably can't make it work on your margins.6) Don't get emotional.7) Seriously, don't get emotional.

There are plenty of areas in DC that make good investments, each with their distinct pluses and minuses.

There is a distinct difference between investing in real estate that produces cash flow and using their own cash to buy that cash flow.

Then add in the two distinctly different types of buyers for these properties, the investor and the owner-occupant, and you get two different price points as well.What I'm getting at here, is when it's time to refinance, you will need relevant comparable data in your area to back it all up.

There is also a vast distinction between "social benefits" for citizenry (which exist in both our countries), a "socialist nation" (which neither Canada or the U.S.A. are) and corporate welfare (which is alive and well in both our countries).I invite you to step outside the keyword stuffing echo-chamber in which all your existing participation on BP has been and participate in the larger community  - it would be an opportunity to learn about your neighbours.

For question 1, are there distinctive areas that you can definitively say that one tenant is responsible for and not the other.

This particular property is in 92105.The other thing that's not shown here (that I intentionally removed prior to posting) that many people don't think about is the distinction between Operating Cash Flow (cash available from operations) and Free Cash Flow (cash available for distribution after re-investing in the asset)  ... as well as the percentages for Cash-on-Cash, Earned ROI (including value of loan amortization), and Unearned ROI (including market-based change in value).I was asking what you mean by "working for buy-and-hold" because I usually see people enter the market already restricted: has to be an area I want to live in ... only $X available to use out of pocket ... must be in a condition financeable for FHA ... must be an SFR ... has to have historical expenses available ... must already be a residential property ... whatever. 

Without getting too deep into legalese, it means that a plaintiff can get around the protections of the LLC and get at the assets of the LLC's individual members by showing that the LLC and the members are really one in the same; that there is no actual distinction between the entity and the individual.