So your example of selling a rental property and buying a vacation rental property that you may also use some for personal use is absolutely permitted by both case law and statute.  

In addition, take into consideration the state statutes for the state you ultimately do decide to form the LLC.

In NC, the worthless check statute (at http://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/BySection/Chapter_14/GS_14-107.html) seems like it applies, but not necessarily for the person wearing the robe.

In the event there is a current statute like that I doubt they are high on the list for going to prison.

In Florida , we have a Florida Statute that clearly states that a previous murder or suicide is NOT a material fact.

ie, one of my tenants is a pastor/minister and the the church/donors pays him CASH and its apparently legal according to his congregation's legal counsel who've provided him a to-whom-it-may-concern letter citing legal statutes as such.

Alabama has an unique statute referred to as the open door policy.  

The thing about the Statute of Frauds, implied warranties and representations can apply from verbal agreements, but since you sand bagged on the lease contract you're in a month to month I'd say, you don't need a lease agreement to be liable, you're living there!

Wholesaling opened my mind up to create opportunities, all of which aligned with local and federal statutes.  

It is beyond the statute of limitation and there is nothing we can really do but fix the issue for the community and move on.