For starters, if you dont buy the house, he will most likely go down in flames. 

I hear on BP that one should not own property in their own name because they can be vulnerable to litigation.

You are as vulnerable as the rest of us.

If this isn't targeting a naive and vulnerable consumer, I do not know what is?

As a result, we now have three new "vulnerable renter" ordinances that will trump state law, they extend the notice period for both no-cause vacate and rent increase.

It is helpful to be proactive in this sense and plan for sudden personal changes that may affect your investing decisions, recognizing our vulnerability as human beings.

:@Dawn Anastasi the duplexes are on the North side of Milwaukee Thanks to the internet, I was able to find the news story online and watch the house go up in flames. 

Second, does personally guaranteeing the loan on an S Corp change the legality's of your personal asset's being vulnerable for things that happen on the rental property.  

Just feeling a little vulnerable and kicked around, I have been less than impressed with any wholesaler to date.  

I have 3 MFR's in an LLC- one main chkng acct for all of the ins and outs, one acct for the security deposits, one acct where I self escrow taxes and insurance monthly for all of the properties, and one linked personal acct where I sweep excess cash so as to get it out of the LLC where it is more vulnerable to lawsuits from my business activities.