The laws in this aspect of the business are always changing and every state is completely different.As everyone else has said consult a local foreclosure attorney, I am just going off what I remember as it has been awhile since we have bought in that state.I am not providing any legal advice and will hold no liability from anything said within this post.

Have meets and bounds questions and general real estate law and liability questions.

@Steve BabiakUse a trust cert with it and doesn't matter what country or state, its done to keep taxes and liability easy nothing else.

The boot camp is doing you no good service forcing you to purchase something you do not understand the liability and regulation around prior to ownership.  

I personally am of the view that the liability protection you get from having a legal entity is well worth the cost in pretty much every situation. 

Again, a single member LLC isn't going to do much good shielding liability if you are the manager, you're the man behind the door and the LLC is one of your assets.

However, collections are always very difficult  I'd suggest trying to cone up with some type of settlement agreement and have that entered with the court .Depending on the state and the related laws, you could put a lien on any real property that they currently own.I am not sure about New York, but my jurisdiction has a debtor's exam and / or citation discover assets where the debtor has to come in and answer questions under oath regarding their assets and liabilities. most of the time, if you get to this point they likelky have no non-exempt assetsGetting a judgment is always the easiest part, enforcing the judgment is difficult.

Some advice:Hacking a house you lease or have an option on doesn't give you the authority to make improvements, you may have building code issues and the owner or contractor will need to pull permits.It was mentioned you do that at your own financial risk.Since a Realtor is involved, they may very well advise (and rightly so) for the owner not to allow improvements made from a handyman investor, they will be concerned about the quality of work and so will any lender and appraiser.Contact the insurance agent, most policies allow small improvements to be covered along with liability (not workmen's comp) but generally materials on site will not be covered.

It'll cost more.3) How much liability coverage do you prefer to get?

If you're assigning your purchase contract, a properly drafted assignment agreement should terminate your obligations and liabilities upon the assignment.