We called our lawyer about it and he has informed us to take the rent from the roommate and establish a month-to-month lease recorded orally only. 

This will establish trust and allow you to become a stronger Wholesaler/Investor.

This will help you establish some credit for the business fairly quickly.  

I am looking to put the least money down and will be using this property as a personal residence for at least a year and then either selling as a flip or establishing a long term rental as it is near a private university. 

I had an S Corp for my IT business, an LLC for my Auto Repair business, and a C Corp set up for my real estate management.While in my mind I need a real estate management business, when I did the papers to establish the management company, one question on the application is what type of business is the entity engaged in, and it clearly states if the company is engaged in anything requiring a license, I must submit a copy of the license, and I do not have a broker's license that entitled me to engage in property management.

I'm sure people will have a new found respect for educators after this whole crisis... hopefully. 

You want to establish a team. 

If I were doing this deal I would separate the two items like this: Funding and Profit.Funding gets a certain pre-established return. 

It would allow for cash flow sooner and get you an established history of rental income that you could claim on your taxes.

I believe that your questions about how to better proceed with mitigation and the respective costs of the options you've put forth would be best posed to a lead mitigation specialist in your local area.If you are aware of lead based paint at the property, you should indicate so on a lead based paint disclosure form and have your tenants sign it.