They do not want to owner finance it and then new owner runs it into the ground and they have to take the property back worth less than when they financed it.You have to be careful on giving full guarantee on  a project if you have limited experience just to get into a deal with owner finance.

There's definitely cash flow ops, but obviously appreciation is pretty limited. 

If you only have a couple thousand in the bank, you're pretty limited in what you can do, unless you find the alternative financing options that so many on these forums discuss. 

If your are wanting liability protection. 

I would recommend you talk to @Tim Swierczek about financing options, most people finance their first property under FHA which is fine however it may limit your ability to expand. 

Electing S-Corp taxation is not a move to make to change liability exposure.

@Paul Rowan I doubt many brokers would be interested in the potential liability if there is no cut for them.

I am not limiting myself to Washington, if there are good deals in other market areas I am willing to check those out!

If buying a commercial investment (Multi-family 5+ units or retail, industrial, etc.) you may need both Commercial Property insurance & General Liability insurance. 

I know having a LLC/LLP would not offer a lot liability protection as the property is titled in our personal names.