You will likely find the need to use some leverage at some point, but its really up to you how much let's you still sleep at night.

I doubt you have any leverage at all, if she moves out, he doesn't have to sell it, it doesn't matter what he could sell it for, he'll just rent it again.Another point, if you approach him, he may come back with a lease instead of allowing month to month as he will probably assume she is looking for some deal with you.I'd say leave sleeping dogs lie and don't rock the boat.

But that might not be your cup of tea.Even if I had the amount of money you do at that time, I would still buy FHA and save that capital for conventional deals later, and extra reserves/liquidity to let you sleep well at night.

Sleeping with the Enemy !!!

I would sleep easier at night if I were able to get some sort of coverage.

If you take a property and fail to obtain your cash and any possible equity the owner had, sleep well because you may very well get sued.

Make sure that no matter what you keep 6 months reserves for the first four properties after your down payment because you don't want to end up not sleeping because it isn't renting fast enough or your furnace isn't working, It will happen.

Yes, you could get a loan and transfer it and ye it is possible they will make you refinance it.This subject has been extensively covered, might do a little searching.You'll find that instead of the LLC BS, good management is the first line of defense, then insurance, if you master these two aspects chances of getting sued will be very slim and in the event you are, you can laugh it off and go to sleep that night.You open an LLC for business reasons not as an asset protection ploy as it is a very poor method.

They then use that downpayment to buy another building, etcThey manage there own properties, raise rents and refinance every 5 years and take out $$$ tax free.My first "new" deal with be 10+ doors as I've had less doors and if you go unrented on a duplex for example, every month that passes will kill your bottom line.The secret is to have any many doors as possible so if you get a bad tenant or go vacant for a few months, you can still sleep at night.I do have about 300K tight up in my house and another 100k on a HELOC.I could always put 100k or so down and exit like the big boys...just thought it be more interesting to do some more creative financing.

Sleep well!