It might be "6 of 1, half a dozen of the other," but I recommend that the new purchase cover all financing, meaning the mortgage on that house, as well as the financing of the down payment, without having to rely on the first house to pay the debt of the second.  

If they cover all liability and taxes you better call them back right away. 

I would love to gift it to her but we not that rich and that is why we want a formal agreement, just to cover our "investment".

@Annie LiNot sure but if You can you might try for a 203k loan it covers purchase and repairs on  property                 Make it Happen                    Steve

They just  count on insurance to cover their risks.An LLC is not a substitute for insurance.

That way if there is a vacancy caused from a student leaving or damage from the renters, someone will cover the costs.2.

With in 5-7 years I would like to be able to financially stable, that is to say that at this point I can cover all living expenses as well as be able to be able to purchase a car, or new appliances, or cover medical bills, all without having to worry about if I'll enough money to eat that week. 

Who covers what repairs?

If you placed the property in your name, but purchased a $1MM 'umbrella' policy to cover the liability issues, would you need to register the LLC in RI?  

I have a rental property with a screened in porch, I've replaced one of the screens 3 times already in the last year.