Now I read somewhere that if my mortgage is still in my name, and not transferred to the LLC name, then its of no use and I will not be protected from litigation. 

It is the government’s way of trying to protect the public.

The thing with wholesaling is that your margin of error is a lot thinner because you typically don't have any contingencies in place to protect your earnest money.

I could see it if you were a Flipper and you had a Team of Subs and were protecting yourself from being personally liable on your properties.

This does introduce extra complexity, additional financing overhead, etc... but best protects *both* your long term interests.Good luck!

Not much you can do if you do not get cooperation from the tenants in a normal situation never mind when they have local laws protecting them. 

The design criteria and review processes contained in this Chapter are provided to protect and maintain the established character of all residential neighborhoods within the City.9.43.015 OBJECTIVESIn order to maintain neighborhood compatibility, any proposal for construction within a residential zone shall comply with the following objectives:(a) Natural AmenitiesImprovements to residential property shall respect and preserve, to the greatest extent practicable, the natural features of the land, including the existing topography and landscaping.

I showed him the numbers I could rent out rooms for, as well as the lease agreement I would use to protect myself and my house. 

But as an investor you are often stuck with limited inspections and need to be very clear on things like easements, wells vs. septic, flood zones, etc. to protect your investment.

But if it goes down, the cash flow of the property is what is going to protect you in the event of a downturn, so make sure that the rents from both sides are more than enough to cover the note and you'll be golden (since you wont want to live in a duplex forever).