They've insured the title then the former owner file a lawsuit and got their property back.The courts in general feel that forfeiture of real estate is too harsh an outcome for not paying your taxes and sometimes the amount owed is tiny in compared to the value of the property. 

From my interpretation a single member LLC(if operated 100% like a business) should afford you the same asset protection rights as an S-corp.S-corp is also a "pass-through" entity...so his counter argument should be null there.If someone is going to go sue you - they don't look whether or not you filed a tax return.Again - i'm a CPA so I wouldn't take legal advice from me.You should get back to the EA if he knows personally anyone who was sued personally for an act that his/her LLC did

last house I purchased was 38.5Kcost to close was about $750 attorney fee was the bulk $600title insurance $110Recording fee $26E-file fee $5

I thought it was "standard" ( the prudent thing to do) to have a mortgage contingency when you are using financing? 

@Andy Bondhus You need to set a standard for ALL your properties and then apply it consistently every time.

The 80% coinsurance is standard.

Set a standard for tenants (such as minimum credit score, no past evictions, clean criminal record, etc) and do not sway from this standard.

If part of a standard turnover the property manager would do typically.

I am currently looking at 203K standard and was shocked by the huge closing costs

I want to know, with my current financial situation, what I can even afford (by the lender's standards) before I dive head first into a property.