., do I have to follow the same eviction proceedings as with any other tenant or can I just kick someone out? 

(Market Value 265k)10% down + closing costs (32k)Monthly P&I + insurance/property tax etc.1400/monthCurrent tenant will stay on after purchase.1315/month rent. 

There will be insurance $13/mo and POS from city $17/mo.Let's say $500/mo make it $6K/year.

If you don't keep insurance on the property if its mortgaged, the bank will get insurance for you and you won't have a choice in the matter.

Lots of people fear the increased insurance premiums, expense and hassle.As to the costs, just talk with a local pool company.  

Private Mortgage Insurance is simply an insurance company insuring a portion of the mortgage.

Now when we sell this subject property,  should we distribute proceeds to each partner of LLC and they handle their taxes themselves OR, should we first take the sale proceeds into the LLC which will call for capital gains tax and then distribute funds to all partners and then again they may have to pay taxes as their income for the year on the profits.What is the best approach in such scenario.

I actually bought a 4 unit a mile away for $45,000 last year but that needed about 30K worth of work so I feel this is about right as this one is turn key with no repairs needed.The seller financing deal - Sales price $63,500Cash at close from me $50004 year note @ 4% for remainder ($58,500), monthly payment of $1000 with balloon at the end, no prepayment penalties.Monthly projectionsIncome =     $2200Expense=    $220 management                     $220 CAPEX = No problems yet but "Unknown age" on the roof and owner has had property for 20 years                     $480 Insurance/taxes = Total taxes for 2017 were $4982 on assessed value of $78000 plus $600 a year for insurance

It doesn't cost much and you can earn while you learn, and stash away as much of the proceeds as you can for investing in RE later. 

The current lender is an insurance company, and I'm not sure how hard they are to deal with.