It's really best to spend a few hundred bucks and consult a real estate attorney in state and a CPA and see what they recommend.

Since then we have consulted a local real estate attorney who consider the LLC/trust scenario an overly complicated one, and that we should just go with our original notion of simply having separate LLC's for each property. 

Hi, I am new to real estate investing, having been doing IT consulting for the last 15 yrs.

I say this because - at 27 years old, 10 years in the hotel industry (on both corporate and property levels), a handful of international consulting projects with small hotels and restaurants, and my own operating business of tourist apartments - I'm not sure where I'd get a certification like that, nor that I'd deem myself an "industry expert".

Please consult with a local attorney.

Recommend consulting with your CPA, who will be able to answer this for you with precision.

I always recommend to new investors to consult both a real estate agent and a real estate attorney until you learn how to actually due the due diligence properly and effectively on you own. 

On FHA 203k loans the EMD and other deposited funds (This does not include appraisal, HUD consultant fees for 203 rehab program, and other site inspection, etc) will go against the 3.5% min down payment.The 3.5% on FHA 203k is a bit different than regular 3.5% down FHA programs because its off the entire "project cost."

I would seriously consultant an attorney to get in front if this problem.

These costs include lender fees, appraisals, inspection fees, upfront MIP, taxes, title company fees, HUD consultant fees, building permits, agent fees, survey fees, credit report fee...etcThat's why its SO important to get the seller to contribute towards closing costs or you'll be left with the entire tab.