instead of heating the situation up by firing the PM and threatening the tenants with a lawsuit to get their act together, I think both parties would be more receptive to helping you out.

If you are dead set on that I would suggest one of two things, build from the ground up or be open to it either taking time for inventory to become available or that it may look different like an in-law suite or two houses on one lot. 

We own the home jointly, with the mortgage owner being an H1B holder.Since we want to rent out the house would like to create an LLC to protect us and our assent from any lawsuits in the future.

@Maximo DejesusYou must comply with Dodd frank when dealing with this type of loan and may also be required to be licensedYou cannot get them to deed property in advance if they do not make paymentsDoing stuff like this while thinking you are helping them just opens yourself up to a lawsuit if it goes bad.

If you fail to follow the rules, you may open your personal assets to a lawsuit.

The first law or lawsuits is you sue the people with the money.

A fellow land investor told me on small tax deed deals instead of paying $2k+ for a quiet title suit, I could just sell on a land contract with a stipulation for no payoff for 2 years minimum. 2 years pass and title is quieted via the passage of time, no lawsuit needed.

Or find a mother in law suite and make money day one instead of after a remodel.

TurnoverIf you do what we say I can keep you from unnecessary legal expenses, like lawsuits.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Google Clayton Morris lawsuit and/or Morris Invest scam for a cautionary tale of what not to do when buying turnkey real estateUnderstand you can not eliminate all risk, only mitigate it.