The benefit of establishing an additional LLC to carry out the operations of your assets is that it can carry the majority of the high-liability operations (paying contractors, property management, collecting rent, interacting with guests/renters,) but you wouldn't end up placing any actual assets in it other than the money it requires to carry out those operations.

The way we see it we carry a higher possible profit margin if we finance through a bank but also carry more risk.

As a white kid from the suburbs, I realize that I will be in very unfamiliar turf as I begin my career as a landlord.So, other than buying a gun that I carry at all times, never going to the properties at night, and screening tenants beforehand to make sure they don't have serious criminal records, what else can I do to ensure that I stay safe while managing these types of properties in bad neighborhoods?

But you have to figure out how much debt you’re willing to carry.

Multiple bank accounts mean multiple cards to carry around.

@Mario Burnias this is NOT a good deal Much to tight, CC, Carrying cost, broker to sell, repairs will be higher, usually are especially at that price point .

He could always apply for a bridge loan which would have higher interest rates, that would allow him to carry both while he closes.

If it does you'll need to make sure the footings under the beam in the basement were sized to carry another whole floor.

After a couple of years, I was able to sell that property for a nice profit... which nurtured the seed. 

@Lydia Woods, I'll answer one part of this... the owner probably wants to do seller financing because he/she will still get monthly income (from you).For example, rather than receiving a lump sum payment and having to pay taxes on that full amount this year, they'll carry the note and have you pay them a monthly mortgage, therefore only paying taxes on the amount they receive from you each year.So, they spread out the tax hit, and they keep getting a monthly income check.