@Ndy Onyidoreplying your strategy on #3, I will add the following for you to consider.Most of these properties as @Rick Baggenstoss had mentioned are run down , townhomes, land lots.There may be additional liens on top of the tax lien, such as HOA lien. also with the townhome communities, some of them has rental % restriction; meaning the HOA only allows so much % used for rental. the rest has to be owner occupied.

However, if you choose lenders that originate the loan (purchase/rehab/DCSR) to the LLC (entity) and do NOT report to the credit bureaus then as long as you do not default on a loan, the odds are slim that your borrowing activity will appear on personal credit.

Hello everyone,I am buying an RSO-controlled property in Los Feliz and will be performing a no-fault eviction so I can move in as my primary residence.The property is currently a duplex, with a 2 bed 1 bath on the top...

Oddly!!!   

Oh.. and one thing I learned the hard way is that some policies have restrictions on borrowing against them, so double-check with your insurance provider first.

The actual amount seems reasonable and in-line but that structure strikes me as odd. 

An attorney can give his opinion as to what the odds are of the different ways a legal dispute can play out, but it’s the investors decision based on a cost/benefit/ risk analysis to decide how and of to proceed.There’s no way for anyone to render an opinion about what you “should” have done without (1) complete information as to the property being purchased and (2) complete information as to the risk tolerance and financial makeup of your investment group.Here’s my advice - don’t second guess yourself based on opinions of people who (1) don’t possess “all the facts” and (2) probably never acted as sponsors of a syndicated investment.  

I'd ask the tenant if they are staying because apparently they don't have to tell you if they are going at the end of the lease (which I find odd, even for CA which is very tenant friendly) and if they want to stay, they are to talk to you about renewing their lease. 

I’m told mixed fund types is ok but I’m curious if my arms-length restrictions on DIY work are imposed on the other investors by proxy.

They don’t follow the same restrictions and principles on a consumer purpose loan.