In structuring this deal I would also take on the existing PM to mitigate risk.I have experience in property management and sourcing deals from both internships and a small wholesaling company a friend and I started through the startup incubation program at my school, so I understand the basics of running a property smoothly, deal sourcing, and negotiations.

The obvious one is, you'll have some/all of your damages mitigated in the case of damage and/or unpaid rent. 

There are also more tenants which means that it is more likely that you will deal with a "professional tenant" or other nightmare.However, bigger properties also have qualities that mitigate the risk. 

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

On the East Coast, there are lots of laws about containment and mitigation.

Before I get it started I wanted to get my real estate investing plan in place so I can mitigate the problems before they happen.  

Do you know any ways around this or have any tips to mitigate this requirement of lenders?  

It was a mistake on the seller to give such crappy terms to execute the lease for the tenant.In these situations typically I make the seller pay for their mistakes by giving a large credit at closing to mitigate the risk factor of terminating in such a short notice.The tenant with signed lease in place is not going to change anything without putting a large carrot in front of them to motivate them to amend the lease.You do not want to to give something to just fix the sellers mistake.

When putting down close to 1 million or millions of dollars you need help to mitigate risk and look for the right property to buy.

I don’t think you should sacrifice the long-term gains and liability mitigation of owning everything in an LLC for the short-term convenience of getting an easier loan.