Worse yet if you have a personal guarantee on it you can't dump it and shed it off without some collateral damage.The key is too always be looking for deals.

Of course, somebody who is on the list could move in close by afterward, so there is no guarantee unless you buy close to a school (they are restricted from living too close to schools).

They are both 100% correct.Second, there are many that will disagree, and that's fine, but I guarantee that you can't make money flipping if you do your own rehab.  

If it's a new LLC having done no business, the bank is just going to have you sign a personal guarantee on the loan.  

I'm worried about the potential for repair expenses on the 4 unit, but nothing guarantees no repairs on the 12 unit so I don't see it as safer. 

But I guarantee you, you will win the war to the good.

You have to guarantee the payment to the owner. 

If all does not go as planned (and it rarely does), the only thing guaranteed at the end of the day is the high rate,  high origination costs and looming deadline of your loan.  

If I was in your position I would put my profits in different investments. 1- open up a DRIP plan with a high paying dividend, 2- invest in a few affordable long term stocks with guaranteed growth, 3- invest in peer to peer lending with as many notes as possible, and 4- acquire 4plex investment property and build residual income.

I would check everything out but I would guarantee he lied on his lease.