If you want to take control of the property without title transferring, to avoid the seller having to pay off the mortgage, you could do something like a lease option, where you make monthly payments to the owner in title (perhaps the same as the loan terms you discussed) and you are given the right to purchase the property any time in the future at a set price ($143,000).

We live in California, and are going to coordinate a trip to TX this fall to start meeting & networking with folks. 

Another option I have used are the balance transfers from credit card companies.

You have to live in it, but once you transfer to Indy, you can refinance it to a conventional loan if the market continues to improve and you get enough equity.  

And at what point would the ownership of the property transfer to the buyer in this situation?

Do those numbers get transferred to a schedule E or am I actually paying regular old 1099 self employment tax?? 

This one loan officer left the transfer taxes on the closing disclosure.

Is it true that the VA will usually transfer the appraisal they have to the lender, thus saving me the cost of an appraisal?

I think that transferring the property to an LLC is a very good option for asset protection, especially since I own a primary residence, have retirement savings and other savings (for the next real estate deals!).

Aaron here is an interesting article about the Cashman Center that is just north of downtown that just the Vegas council OKs transfer of Cashman Center back to city.