Its relatively new structure(1995) and it goes for relatively cheap price.However, it has some damage to the ceiling sheet rock and plumbing was also damaged.

Should Buyer elect to carry out this offer despite such damage, Buyer shall be entitled to the insurance proceeds, if any, relating to damage to the property, plus a credit toward the purchase price equal to the amount of Seller's deductible on such policy, if any.

In a somewhat related story... the city of San Bernadino also just filed for bankruptcy.

Should we setup the LLC and it's relative bank accounts before purchasing anything and writing up lease agreements?

I hope to finance my first home with an FHA mortgage, but would like to acquire investment properties relatively shortly after moving into the first home.

When you take away that over-supply (tighten-or, better put, "implement" lending criteria), you are going to drive down demand for housing, while keeping supply relatively constant (actually, due to rampant builder production, supply increased even though demand decreased).

They went home and moved in with relatives, etc and did not go become a renter.

There may be some local issue or state tax issue, maybe a transfer tax applied to non-owner occupied, don't know, but Steve makes a good point, state your initial intentions.Such a question is not part of a quit-claim deed to convey title, so what ever it is that you have asking the question must be related to local customs and requirements.

They aren't lending and these private lenders (and relatives, mentioned several times) are stepping in to fill the gap.

Health.