You guessed it: the financing.I'm pursuing buy-and-hold, SFH.I don't have much of my own $$ to throw into the pot, so here's what I'm thinking:- Figure out about what a house would cost (I'm told to expect ~$200K - $250k)- Assume a traditional loan, and needing 25% down- So I'll need to raise ~$62,000 for the down payment- I approach friends and family, network with potential investors to raise those funds- Bank supplies the loan for the remaining ~$180,000Something like that.Should I speak with a real estate attorney before approaching those potential investors?

Also, the property is under my personal name, so, can I change that later to an LLC, or does it have to remain in my name forever? 

The agency provides the staffing and the landlord remains hands off....except for themodifications that need to be made up front.

Just the cash out on my existing would be around 1K monthly and still leave me way short to aquire the property.Potential Property Sale Price: 85k (120K Market value)Existing Renter: $1200/monthAvailable Cash out: 30KRate: 8% + taxes/fees: 950/monthMortgage remaining 55K: ??

That you are converting the space and that you also plan on rent increases to stay competitively priced.After that, it's up to the tenant to decide if they wish to remain.

Assuming the only adjustment to basis was for depreciation, there would be a gain of $1,615,750 ($2 million less remaining basis of $384,250), taxed as follows:$19,583 (the excess of $915,750 depreciation claimed over $896,167 that would have been allowable using straight-line depreciation) would be taxed as ordinary income;$896,167 (the depreciation that isn't recaptured as ordinary income) would be taxed at a rate of 25%;$700,000 (total gain—$1,615,750 less $915,750 ($896,167 + $19,583) would be taxed at a rate of 15

If so, then am I satisfied enough that I would not walk away from my Ernest money and bring more dollars to closing?  

I’m not satisfied with my current PM.

As a first timer, I would recommend paying contractors quickly (as soon as you're satisfied that the work is done completely and correctly) to establish relationships. 

In the process.... then the 2nd floor tenants both have job issues and are at least a month behind, 3rd floor tenant left after not paying last month rent and remaining 3rd floor tenant also a month behind.