Originally posted by @Storm Silva:Credit default insurance and a home warranty if your cash flow will allow it will allow a property to survive those stress testsSo You’re  buying home warranty’s and credit swaps to protect your portfolio?

However, i do not think that by spending $10K here will result in a $100/mo increase in rent. 

Someone who is saving cash to make a deal in MN work is not likely to be a player on a buy and hold deal in San Diego :)I am spending more time working on off-market deals and looking at commercial listings. 

If you are serious about investing then you should definitely get an LLC to protect you and your assets BUT do that in conjunction with implementing all your marketing.You have nothing to protect if you never get a deal.

In addition, LLC's are for asset protection and most people buying these types of properties really have very few assets to protect...

If you do I would just spend that on rentals assuming that’s your end goal.

I have a bit of a background in finance, but I'm still in the process of spending some time educating myself on the foundations of having success in real estate investing. 

I have spend many hours working on this house.

There is no wrong way, the LLC gives you more protection along with tax benefits. 

What other protections can I put in my initial offer to protect my ability to back out?