If you want true asset protection, hire a property manager and make sure your attorney reviews that contract and get proper insurance. 

Florida considers it to be a sale when it’s between separate legal entities; they deemed the sale to be in the price of the mortgage amount.

If the property is tenant occupied, you should require your tenants to have renters policies and lastly and just as important as the insurance you obtain is knowing all vendors you rely upon to perform work at the property and on your behalf are properly insured.

Here's a casein FL - Seller in foreclosure has 120k principal @4%, Shes 10k in arrears, house is worth about 250k, good condition.She wants to stay at the house, but doesn't mind selling it if needed.She will likely not qualify for a loan mod at the moment, good amount of equity.She works in the medical field, just took sick and fell behind.I was thinking of offering to pay her 10K in arrears and creating a 2nd mortgage @ 10% interest.if she defaults, i can foreclose,  as there is a bunch of equity there.any thoughts of a better scenario that i can make more of this situtation?

First mortgage paid off as well as all other parties (attorneys and surplus, etc).

It is either a fix and flip and pull out equity or a simple equity hold from renter paying mortgage at best. 

I’m reading that the fees are .07 x the mortgage amount to transfer into an LLC.

The most obvious is that you will be able to offset your mortgage with renting out a few rooms.

I could probably do a 3-5% down payment for a property here but the mortgage payment would still be higher than I want to pay as the loan size would be bigger because I’d be buying a $500-600K+ house. 

Hello,We would like to offer a homeowner a reverse mortgage and lifetime use of the home.