If the seller hasn't filed yet the Ch13, get them to extend the actual filing date as long as possible.  

You are in Wash StateLease w option is renting then getting a mortgage.CFD, Contract for Deed, AFD, Agreement for Deed, LC, Land Contract, ILC, Installment Land Contract, all basically the same, Some down payment, monthly payment, term 1 - 5 years, balloon paid off in full or extended. 

Come to find out, we owed almost 30 years of back taxes which were substantially more than the value of the land, so we hired an attorney to have the taxing authorities release us from the suit once once we executed a deed transferring the property to taxing entities. 

That's why I believe this apartment cycle will have an extended peak similar to the illustration above or How I Learned to Stop Worrying and Love The Bomb Low Cap Rates.

You will have had to pay down your mortgage balance and extend your term or decrease your rate to make a difference.

After the 36 months if I still had a balance they would look at extending it but if have to pay fees again.

make sure you negotiate release clauses so you can sell some off individually without paying the loan in full if the need arises

That way you know it is done right and it releases you of liability of something going wrong down the road.

To answer you other question, yes, you can set an extended closing date but you can't have an option period that exceeds 180 days or the contract becomes executory in nature.

You can get business liability insurance for your LLC and you want to maintain good personal coverage and have an umbrella policy, though in my experience they limit the number of covered rentals and won't extend coverage to being sued personally for business activities (i.e. stuff you LLC does).As for an LLC you should get the same protection regardless of what state you set it up in as long as you maintain it correctly.