A thorough response as always.I have my own take, and as any attorney will say, this is not legal advice...For the asset protection purposes you need both (1) insurance and (2) properly structured company for litigation protection, an LLC/LP/etc.Insurance protects your from nuisance that occur on the property; i.e. slip and fallThe company structure protects your assets from litigation liability; i.e. gross negligence (health and safety, alleged known hazards, fraud in the sale of the property) as well as someone getting to your assets by suing you personally (e.x. you got into a car wreck that exceeded the coverage of your policy, now they can go after your assets)The due on sale clause is often a concern, but me and my colleagues view it as a very low risk for a number of reasons.

@Luke Feds I haven't research too much into the Fort Morgan market, however properties seem more than affordable and it's within a drive from Denver.

My goal is to continue to grow my book of clients that will afford me the income to invest in real estate. 

If you can afford a higher mortgage payment on your live in property, you can also pull equity out of that, but I would leave it alone. 

FHA, they're ensuring there aren't health/safety issues too.You can tell your local lender to get his *** out of the office and come look at the property a few days before the appraisal.

But, for this particular deal, I believe it would behoove me the best to get into something that is cash flowing better, so it can afford me the time to get into more rehabs / flips.Bob B, you make a good point.

If the cure for affordability is a real estate crash (which I can't see in the cards), we might regret the impact also.

(BTW, the owner is completely broke to the point where he had all utilities in the home turned off at least for the past year bc he cannot afford to pay them.

Do you think this would help at all if it was affordable.

Response to Angela DeBorjaI believe you need to be where sellers, owners, investors and auction bidders are to really be market wise.Learning this business has many advantages, but also giant pit falls; tenants suing you, not paying rent, rent escrow, no income (mortgage must be paid), repairs, unnecessary calls.negotiating with sellers can be distressing; tax sale, mortgage foreclosures, health issues, bankruptcy, estates.Bidding on tax certificates, lots of competition.I like to avoid the competition and deal directly with people who really want or need to sell.Go where you are respected and appreciated - to the sellers who want an offer.Rent court - who goes there - tenants who don't pay and----- and landlords with tenants who don't pay!