If there is a loss and any question you can see what you have for coverage.

Crowdfunding is an exemption to SEC requirements, a new popular thought in small amounts to limit losses of unsophisticated investors.

I will say that while I don't have experience in CT, it seems that the area(New York, Mass) is fairly tenant friendly and would assume CT is as well while FL is more LL friendly.Also I googled and it looks as though CT has a net loss in population between 2000-2010, while FL had a net gain of 17%.I will admit I am probably biased being a FL boy born and raised, but those factors along with no income tax, lower cost of living(which can translate to cheaper repairs), and lower price point for properties would lead me to FL.Now the disclaimer, I have been seeing prices run up the last year due to tons of foreign investors it seems and FL, Vegas, AZ are those areas hit hard by the bubble due to lots of speculation, so I would be cautious of that again because it is completely possible that there could be a mini run going now, however if you buy right and are getting good cash flow I think that that becomes less of a concern since you are focused on say 10 years from now not next year.

I pay the bank 640$ a month and the seller $200 a month for a net loss of 15$ per month, plus I pay insurance and property taxes out of pocket, for about 800$ per year.

There will be pitfalls and challenges, but compared to a book that doesn't lay out a clear and competent vision like that one does, I think it's worth its weight in gold.

That, coupled with the possibility of a lawsuit or buyers agent commission obligation if they violate the contract and back out, might convince them to cut their losses and eat the balance of their mistake.

2) Are there other downsides besides the loss of liability protection of not having an LLC own the property?

I foresee big losses in next one-two years.

There are really two camps on this one....1 - Many people believe, as Al said, that there's more value in the links from the stolen content then there is loss from others using your content.

BUT that will come at a much higher risk because the newbie's lack of experience might cause the deal to result in a loss, and if you are a newbie too you can't add much value to prevent the deal from going awry.