Based on a recent experience, I would reach out to your insurance company and find out if, worse case, the dog bites or causes harm to someone on the property, if it would be covered. 

If there are conflicting reports, get a 3rd, no harm in it. 

Pretty well accepted premis-a neighborhood of small houses will harm the value of larger homes and vice versa, so you're fine, imo all other things considered equal.

Curious as to any thoughts on whether this would be helpful/harmful/neither for an investor.Looking forward to learning, making contacts, and most importantly making money!

Is there any harm is setting up the LLC ahead of time before "shopping"?

If you get too far beyond 70%, you are putting yourself in harm's way.  

If you don't have another option it sure is nicer than a ladder ;).However moving anything of substance up and down them is an absolute nightmare.

I don't want to do anything that may harm the seller or their credit.What situations should I use this tactic?

They are either new, like you, not local, or taking advantage of you.I always take the approach that, if you have no money committed to the deal, there is no harm in doing a handshake agreement.  

AFAIK, simple incompetence or dereliction of duty isn't cause for removal, the partner in question has to be actively trying to harm the partnership.2) Generally speaking, you can't legitimately negotiate a deal that's self-serving or self-dealing, where one partner does very well at the expense of the others.