Searching on the internet it looks like 8% is extremely conservative.  

Life is too short for long pity parties.

I still have a mortgage on my current residence and have heard that transferring this to an LLC could trigger the mortgage company to consider this as a sale.For the purposes of protecting myself and keeping the rental house seperate, I was wondering if it would be beneficial to start an LLC purely for managing the rental party.

I would also recommend driving the area at night as what can seem like a not so bad street transforms after dark as the partying picks up and the students get  routey.  

The general interpretation is that an IRA and a disqualified party may joint venture under the conditions that: Both parties enter into the transaction jointly (not one buying interest from the other).  

If the buyers feel like they should get more money, they can do one of three things:1) re-negotiate with you to amend your original contract2) walk away from the closing table and refuse to sign (basically bringing the deal to a halt)3) suck it up and sign.I can't imagine a closing attorney would hold money back for any reason, unless he had it in writing and signatures from both parties that money was to be held back... that seems beyond me. 

Too conservative?

The irony is that although you think "having to pay thousands of dollars" for an attorney is a bad idea, the other 2 parties clearly thought the property was worth the legal risk-- they were willing to risk their own thousands of dollars, a breach of contract, and loss of the asset over it, not to mention some sort of likely punitive damages since they were a lender and the property was REO.

Third parties in mortgage lending and servicing require license.  

Clean up 25k with conservative sale price of 360k.