Even if he doesn't intend to sue you, his insurance company almost certainly will (called subrogation).If the house is in your name, they would be sueing you personally, and going after all of your personal assets and income...anything that is in your name is fair game.If the house is in the name of your LLC, they can only go after the LLCs assets.Many people form a different LLC for each property (or every 3-5 properties) for this reason.Similarly, if something like this were to happen, you might have the option of declaring that particular LLC bankrupt without affecting your personal credit (personal loan guarantees notwithstanding), and you might still have several other LLCs that are still operating and financially sound...the bankruptcy of one does not necessarily affect the others.So it's a matter of not putting all your eggs in one basket (and not mixing personal eggs with business eggs!).

The pro formas looked good, the rents looked good, the purchase price seemed fair...

Eventually you find that properties in each market, or zip code, or even group of blocks, form a pattern.  

We form a single purpose LLC for each asset we purchase and then divide up ownership percentages based on contribution.  

Etc, and so on.If you're a good people person, and can form a rapport it will go a long way in making negotiations for the purchase of this property seem like a breeze.Do a forum search on BP for seller financing and see what other people have put together. 

Running cashflow projections and pro-formas was straight forward since most of these properties could be conventionally financed using 15 or 30 yr fixed rate amortization schedules.I'm curious how other's are evaluating larger multifamily properties using Balloon and ARM loans.  

Me and Alfred (rehabber) started to form a relationship in December right before I got this deal locked up.

The costs of repairs, leasing, turnover, eviction, taxes etc especially for a long distance owner is so much more than the "pro forma". 

Do they have to form a corporation here in the states so I can tax their C-corp?

But if you're completely green, it may be a better idea to save $400 on a cut-rate inspector, and instead pay for 2-3 separate but detailed opinions form a licensed foundation expert, roofing contractor and perhaps a plumber or an electrician.