I possess the most real estate knowledge (very minimal compared to the rest of BP), my one friend is a finance wizard and has a large amount of capital, and my other friend is an electrician and could handle some maintenance.

This is my first property so I am unsure about other issues such as long term water damage, tenants having damage to possessions, damage the insurance won't cover, resale, etc.

The buyer immediately takes possession of the property, often paying little or nothing down, while the seller retains the legal title to the property until the contract is fulfilled.

Depending on whether the investor has taken exclusive possession of the property or not, and for how long, the lender might have additional time, up to three years after the tax deed.  

My PM called the police, and the police told my PM that the squatter had already taken possession of the home, and made my PM give the squatter the keys to my house or face arrest.  

Better to focus your energy on getting ready to take possession and find a great tenant. 

LLC's are legally considered persons and can possess things like trusts.I would need a bank account for each LLC and a person to act as local trustee in the Wyoming, where I am thinking about having the out of state LLC. 

I'm a huge fan of house hacking, and like you, possess some ability to do my own work in the properties I own. 

@Kris BucciIs the differential based on the price increase between when you sign a contract to when you take possession?

These neighborhoods possess characteristics which are highly desired by today's buyers as well as tenants.