I am going to pay him cash and will subsequently own 50% of the home.

@Logan Halliburton, I'm very cynical about the idea of a Company setting itself up as a "Turnkey" Company whose promise is to "wholesale" a distressed home to you, and arrange all the subsequent rehabbing, and provide ongoing property management, and still cost you only 70% of a Lender's genuine appraisal for their re-finance, so that you'd get all your outlay back again.

I have heard of a few commercial deals that cratered on account of buyers getting cold feet. 

I subsequently traded emails with him for the better part of a week demonstrating why I thought he was wrong.

You should be able to do this for about $750.Now, for subsequent LLCs, you can take those docs and change the LLC name, then file them yourself with the state for $70.How many LLCs do you need? 

As far as your premium questions if the lien is bid down to 0% or at a premium at auction, the lien will not generate interest for you until you pay the 1st Quarter's subsequent taxes. depending on the dollar amount, you will generate 8% or 18% (lien < $1500, 8%: lien >$1500, 18%) as long as the lien is redeemed within 5 years (may vary from town to town and county to county) the premium is given back.

He was willing to generously and freely share his knowledge about note investing with a newbie, as have so many others subsequently (thank you all).

We have annual inspections here & subsequent requests from the city for tree trimming, weed abatement, etc. 

Any allocation of passive losses you cannot use in that calendar year will carry over, so they can be used in subsequent years.Keep in mind, some property types will garner more bonus depreciation than others.

Any allocation of passive losses you cannot use in that calendar year will carry over, so they can be used in subsequent years.