Legally, you would have to purchase the property for the mortgage balance and resell it to the ultimate buyer. 

There’s many legal reasons these days to avoid doing this .

-Rudy Vazquez Zoning is usually SFR some have multiple, if the lot does not have approved plans, how long does it normally take for approvals to come thru and development to begin?

Invoice them for damages, legal fees and get the property for the next tenant.

Of course, the main issue we seek to tackle is how to best limit the liability of the parent company - and the attorneys that we have spoken to claim that 1) "this is out of their league" or 2) are unable to provide any specific insight on the specifics of the legal structure.

Is it recommended to establish a legal entity before starting the journey into real estate investment?

If I show the one in person and call the other on the phone is that ok to avoid any legal ramifications in the tenant search process?

Most cities require a business license and some require special approval for a home based business.

I guess if damage is done I have security deposit and legal recourse as well.

That link is for an article I just published here on BP that spells out the details of how you can meet this requirement easily and cheaply.As always, make sure you have a competent real estate attorney on your side if you choose to follow through with forming any kind of legal entity or agreement (like a JV Agreement or Limited Partnership).