An LLC is designed for asset protection in the event there was a law suit stemming from the property.

Having the rental in an entity (LLC, corporation, NOT a land trust) might limit the assets that could be attached by the lawsuit to the assets that belong to the entity.

(Perfect house would be something with an in-law suite or basement with a separate entrance/kitchen for myself to live in and the tenants to live in the main part)         3) Ideally a Live In-Fix and Flip but would be okay with something more turn key if the numbers worked  4) Hoping to stay under 500kIs something like this unrealistic in your eyes considering the market currently and lack of inventory? 

Will depend on several factors like the type of property, type of tenants, your risk tolerance, other assets you own, your estate planning, laws where the property is located, etc.Any lawsuits would be limited to the assets of the LLC and not your personal assets (assuming you run the LLC appropriately and the corporate veil is not pierced).

We're looking primarily for small multifamily properties or a SFH with a mother-in-law suite.

The HOA needs to be 51% owner occupied, no pending lawsuits, have enough reserve funds to pay next year's Master Insurance Policy for someone to buy with a normal loan.With a condo you can never control what the HOA does or spends on, which is negative.Get the tenant out ASAP.

These are "local law" questions.At a minimum if I wanted the property and had the ability to close immediately I would be demanding that the seller do so or expect to defend a lawsuit.

They may not write LLC's (then you will need to get new coverageSpeak with your attorney to see if the parent LLC could be brought into a lawsuit regarding the property.  

The areas that are discussing regulation are:Conway - there is a lawsuit underway regarding regulations.Madison - being discussed at town meetingsFreedom - being discussed at town meetings.Jackson - has regulation in place. 

I assume he’s trying not to lose the property to a lawsuit.