Don't forget to remind her there are expenses (taxes, insurance, repairs - new carpet etc) and vacancies so rents can't equal the payment.

More importantly, this is an REO sale, and they typically come with title insurance.....which means the bank will pay off any past due taxes and liens that survived the foreclosure auction.

The rent is aprox $400 bellow our mortgage/insurance payments.

The rent is aprox $400 bellow our mortgage/insurance payments.

Do your research before setting up an out of state (OOS) LLC while being a CA resident.LLC in CA has a minimum $800/year cost/tax.You did not specify why you are looking at LLC but if it is asset protection an umbrella insurance coverage is another option and typically is less error prone. 

Will a title company even insure this?

My recommendation would also be to get the highest liability coverage available on your landlord policy and then to follow that up with an appropriately sized umbrella policy considering all your assets, future wages and growth of both.

INSURANCE□Do you have adequate property and liability insurance of each property and do you have the correct type of insurance?

Can one get home insurance on student leased home?

You are also going to need to carry insurance in every state you are licensed in, which will drive up yoir costs.