He has owned it for over 30 years and has no debt, so seller financing is possible and he doesn't need a large amount of cash soon. 4 of the 6 units have been recently updated. 

If you're a good student and can get into a good college without going very deep into debt, I believe you should go.

LLC offers better legal protection.3) Setting up in states that allow your identity to be hid is also overblown.

I understand this is not a requirement, but I have never received a damaged unit from an inherited tenant or any legal issues.

As for the legalities of setting up an LLC to protect you and your partners, I would consult with an attorney for best judgement. 

I won't be able to make the cottage legal rental without living in the primary home myself.

I will preface this with the fact that I have a legal background, specifically with estate planning and asset protection.

You will want to consult with a lawyer.In regards to your last two questions here's some background on what makes a contract valid and enforceable:Offer: A promise to do or not do something within a certain time period Acceptance: A clear and direct statement that all terms and responsibilities are accepted Consideration: A legal and adequate inducement given in exchange for the promise Capacity: The parties to the contract must have the legal capacity and competency to contract Awareness: A party must be aware of the contract Legality: The contract must be legal in the jurisdiction it will be operating in***Not legal advice*** Steps I would take: -Review contract in detail to understand each counterparties responsibilities (if you are not aware)- Email a copy of the lease to each of the tenants listed on the lease and reiterate lease expectations for termination notice, rent payment etc. - If the lease was signed via Docusign (other esign may have same ability) - you can go to the envelope, go to history and view the IP addresses for each action taken.

The major pieces of information you are missing include NOI which includes deducting all of your operating expenses from your gross rents sans debt service, market dynamics (what are vacancy rates and asking rents like in the market the building is located in?)

It may be too late.yup stop payment.. also for future reference if you cant pay cash for these kind of educational events don't do it.how are you going to do business if you have to charge this to even get started.. this is the very thing that really bugs me about the real estate education sector in the US>. talking people to go into credit card debt when they know full well only 10% or less of folks that try this or any kind of wholesaling / flipping/ notes / lending etc will do anything .. and especially if you have no capital.