I do however have a couple follow-up questions:What protects you against the current owner taking the $600 monthly payment and pocketing the cash instead of paying down the mortgage?

Remediation is largely to protect you from liability. 

That protect the landlord for suits based on Libel, Slander, and the like.

Most new people don't know how to make an offer or what contingencies are needed in the offer to protect themselves. 

Hi Alex, my advice for you would be to prepare a solid investor packet for them, regardless of relations: friends/family or Hard Money lenders, show them how you will put their money to work for them, the investment strategy and how it works, allay their fears by addressing risk, how you are protecting them and what your risk mitigation strategy is, Breakdown the deal for them and Address the benefits of why it is they should invest in you and your system versus keep their money elsewhere.

As I understand an LLC provides a convenient asset protection and security.I currently own a multi-family in my name.I am wondering if it makes sense to transfer the property to an LLC.Thanks

Some landlords put each of their properties in different LLCs to isolate them and provide maximum protection.

Have the tenant initial and sign, hand them a packet on how to protect themselves from lead paint, and you're done.Hundreds of rentals and I've never, ever seen a Landlord with knowledge of lead paint.EPA Guide For Buyers, Renters, Landlords

There are even laws that involve deadly force when protecting your property.

Instead, continue to educate yourself on how to buy and manage rental properties (since that's your end goal), start analyzing deals now, and ensure that you're in a position to jump on a deal if it presents itself (save for a downpayment & protect your credit score).