Justin, I'm definitely going to click on that link and get searching.

Depending on the state laws, your tenant may not be able to get rid of his guest at a later date without going through an eviction -- would be good if he knows that ahead of time and has the tools available (ie guest being a subtenant, not a "regular" tenant). 

Areas where schools are terrific are always in demand, and you can buy something that cash flows and appreciates, without the thought of expensive repairs ahead.

I’m buying a duplex for 55k which bank has already given me go ahead for with 20% down and 4.5% either 15 year fixed or 30 year adjustable after 5 years.

I’m buying a duplex for 55k which bank has already given me go ahead for with 20% down and 4.5% either 15 year fixed or 30 year adjustable after 5 years.

Thanks for clicking on this post! 

If you want to borrow money from your family, figure out the arrangements ahead of time and get it all in writing. 

Thank you ahead of time!

As far as how to form an LLC and the rest of the questions you've asked here I would highly recommend getting some face time with a local real estate investor who has walked this path ahead of you and can speak from their experience, as this will be a good opportunity to "begin with the end in mind."

I've decided that I will go ahead with this deal even with the huge run up last year.