You will also need to find the right seller that is not in rush to sell the property and is willing to work with you on how long you can be in contract as this type of loan can have unexpected delays with so many other moving parts.

Every gury, especially Pace Morby, makes it seem like there are a ton of these "Sub-To" deals out there when in reality, there are very, very few of these types of deals.   

Would it be better to form an LLC or LLP for this type of deal and should it be created in MN or CA?

Hi Paul, You can use an SBA loan to purchase a self storage building as this type of asset is considered a business. 

We live in Seattle, so somewhere on the West Coast would be ideal.

If not, a type written note you hand to them personally is best.

She supported me through school, and now that I'm stable in my career, I want to return the favor by helping her build a retirement nest egg.Her financial situation isn't ideal, with maybe only about $40K to her name and no significant assets.

But at this point do not want to get too much ahead of myself.So, basically, keeping my current situation in mind, how to form an LLC, any specific type (cost effectively) and move my property into that LLC and eventually all my finances too.

This material has 0 tolerance for humidity of any type, and will explode like a sponge if it gets wet a couple times.I have seen situations where homes are closed up all summer due to foreclosure and large portions of the floor start to swell and buckle just from excess humidity and no A/C.

I would highly recommend being as up front with any lender you work with and to find a broker/lender/lawyer team that is all on the same page from the beginning and are familiar with these types of transactions.