This is where you would get your inspection done etc.After the option expires or Is dropped, the Earnest money is only returned if the property doesn't perform. 

(They are already arguing over who its entitled too) I'm just hoping to come to an agreement that doesn't end with an expensive eviction process or serious property damage...

Assuming he actually is open to selling, your offer should show him that you're providing value to him by freeing up his time (which sounds like he doesn't have enough of).

Just because you have an LLC doesn't mean you finance properties through it.I finance in my own name, and when the dust settles, I quit-claim over to the LLC.

That's why the 10 loan limit rule doesn't apply.Conversely, portfolio lenders do not sell their loans to Fannie or Freddie, so the 10 loan limit rule doesn't apply here either.

Cheap doesn't mean it's a good deal, but I've never seen a good deal that was listed at the highest price point in the area.Also, please keep in mind that these prices are STARTING POINTS so do your research, find out if homes in your area are going for below asking price or above.  

I would think of at least one exit strategy if the market doesn't do what you want.

It is called a Kiddie Condo loan, but it doesn't have to be a condo. 

Thankfully, none of my properties flooded (although that doesn't mean there wasn't any damage). 

If someone is offering a deal that is only open to accredited investors, being a family member, best friend, or grandmother, doesn't change anything.