@Dmitriy Fomichenko Wow a solo 401k is not subject to UBIT.

There is statutory, and Fannie/Freddie guidelines, that explicitly exempt these transfers from being subject to the Due On Sale Clause...asset protection/estate planning purposes are covered.Why Use LLC when an Umbrella Policy Does the Same?

What rentals are not subject to fair housing law?

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

If indeed it is stated that the second lien foreclosure is subject to the first, then no, the first will NOT be paid off. 

Is is subjective by real estate agents?

Which of the two scenarios are we talking about: Subject-to or Owner-financed wrap? 

Good you are researching this topic - I also love subject tos and have written a book on the topic.  2. 

Namely, that if a tenant (in this case accompanied by a whole family) ends up stop paying rent and I would be on the hook for both covering the mortgage and dealing with open ended legal costs and time.

When an appraiser is adjusting a comp to match the subject property, he or she will use an adjustment based on the difference in square footage.