What's more, you're a beginner and expect a private lender to lend you the down payment and closing costs, so you can get a loan to finance the rest?

Just leave things alone.If you don't deed it to the LLC, then it's a useless LLC costing you fees for no reason.

Also, look into KREIA up in Louisville.

The reason folks prefer not selling, is you avoid all the transaction costs..... why burn 6-8% of your profits if you can avoid it by holding onto the asset? 

My apprasail and inspecton report cost will be at risk but I'll be covered if the deals blow up.

Having been in many aspects of real estate throughout my career my favorites are ground up construction and note investing. right now note investing takes the cake as it can be done in any environment whereas ground up right now is very challenging. 

Build up your cash reserves people...

Right now there is no sign of flooding or anything, but just wondering if that is a positive thing or negative thing to the property?

The actual cost to them is little to nothing.

Here's some guidance on buying your first investment property in Southern California or Columbus, Ohio:Down payment:For investment properties, lenders typically require 15-30% down payment on your first investment15% down is possible with excellent credit (700+ score)20-25% down is more common, especially for multi-unit propertiesSection 8 considerations:Pros:Guaranteed portion of rent from governmentPotential for longer-term tenantsMay be easier to fill vacancies in some areasCons:More paperwork and inspections requiredRent amounts set by local housing authorityPotential property damage concernsOther tips:Research local markets carefully - price trends, rental rates, etc.Factor in all costs - taxes, insurance, maintenance, vacanciesConsider starting with a single-family home or small multi-unitBuild a team - real estate agent, property manager, contractorsHave cash reserves beyond just the down paymentUnderstand landlord-tenant laws in your chosen locationI'd recommend talking to local real estate agents in both areas to get more specific market insights.