It is possible that the Selling Agent tried to lure you into a sale that would harm you, but I find it hard to believe.  

Now, that said, partial loans sales do occur.  

So it provides some cushion for me if any downturn occurs in the next few years.

Assuming that your plan allows participant loan (not all plans do) "Repayment of the loan must occur within 5 years, and payments must be made in substantially equal payments that include principal and interest and that are paid at least quarterly."

There are commercial products that can kill the root of the tree and not harm the rest of your yard. 

As real estate investors, I know we could all agree that this is a dynamic industry that we work in and bumps along the road to financial independence do and will forever occur.  

Condensation is simply a function of dew point- when air of a given relative humidity contacts material of a given temperature, condensation WILL occur.

I have had both occur.

If you think you will go FHA, Conventional, 203k, etc. and then Quit Claim the property, to a LLC, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days.

I might ask that some of the proceeds of the sale be held in escrow to provide a security deposit and specify that the house be left in broom clean condition and that you were responsible for any damage that occurred during your tenancy.