Typically auctions/tax sales carry a disclaimer that no guarantee of title is provided.

@Carrie GiordanoMy issue is with your agent.

As I understand it, the requirement by the lender for you to carry PMI is if you are borrowing more than 20% of the value of the property. 

This will let you factor 40% of the rent for maintenance, management, etc, etc, etc.Other ways to get into a property are to joint venture with others, find a property with seller carry back or seller financing.

But in the long term, I know being an Agent carries higher standards / TREC requirements?  

They collect the property on the note expiring, and now own the property.Most financing available today is going to be 75% to 80% LTV for commercial property. you're better off finding a property where the seller will carry back a portion of the purchase price, and then find financing that will allow that.The only way I see that working is on carefully calculated upside potential - ramp up in rents or occupancy; completing rehab, etc. it's just risky to me.

Do I take $15K of expenses now and carry the $7K operating loss forward to the next year?

These can offset your total deductions to have the rental property take care of the debt service and carry as much of it's own weight as possible, when it comes to your DTI.

With FirstKey and if a property in this purchase method were that of an LLC, wonder how the income exclusively from the property would carry both the new loan and the LOC amounts total.

Business losses can be carried back 2 years and forward 20 year for tax purposes.