As I read your post, I found myself wondering how to do you protect the lessee (tenant) from a less-than-horoable seller that might want to go behind his back and take out a HELOC or refinance?

Protect yourself.

Pretty much anywhere with beaches with lounge chairs and drinks will do.

I don't want them, and once you get burned a couple times by miscellaneous circumstances like these you become overly protective with similar situations in the future.

Marvin i used to use the same 9 page contract that a Realtor used in my State.Now i use a 1 page Purchase Contract with the same language and a couple weasel clauses i added to protect myself.Anyways try to get a Purchase Contract from the State your investing in or if you have any friends that are Agents that can provide you with one would be better.Start by eliminating all the Broker's stuff,Financing,and all other stuff that you don't think is needed also add all the legal language your State requires.HAPPY HUNTING..

8. have you consulted an attorney re: the asset protection issues associated with each strategy?

Expected Soft Expenses During Rehab- Carrying costs (mortgage, interest, taxes, insurance)- The necessary insurance needed to protect the property- Do I get it personally or as my business entity?

You also can tax defer your capital gains or refinance out your equity tax free.I would recommend you incorporate rental property into your portfolio to provide some balanced tax protection to your investment strategy.

I want to be a landlord,but with all the problems today such as getting sued by tenants,enviromental issues,and the list goes on.How do wealthy landlords protect their investments,and keep wealth,and from such problems?

They are looking to protect their interest in the property.