Otherwise they're just handing over a $1M property to you and if you default, they have to foreclose which is time consuming and expensive.If the seller does have a mortgage, then it's far more complicated and more of a "Subject 2" scenario where you're not taking title but making payments. 

Now to your question: who physically delivers to the tenants is typically outlined in the contract, but most common is the seller.  

Meaning, if your PITIA is $650 per month, they will only allow you to use $650 of rental income on the subject property even if the 75% calculation is higher than that amount. 

It's also clearly outline in contract.  

Follow the Vivid Vision book by Cameron Herold as he gives a nice outline for how to do the project.

  $44,000 of this debt is federal and currently isn't subject to interest rates due to the government putting a hold on this.Without getting into the nitty gritty, I've got about $1000-$1500 per month of "extra money" (Mindy would hate me for saying that). 

I am in the process of making my basement a legal flat and wanted to know if it made sense to get a pro to outline my idea. 

I was told recently that in Texas, unlike some other states, it did not matter whether you put the property in an LLC or any other entity as a tenant can still sue you (the owner of the LLC) and all your other assets can also be subject to risk.

Rental real estate is a local game when it comes to things like you outlined in your post. 

Also be ware for conventional conforming loans, they are subject to Fannie Mae / Freddie Mac underwriting.