The reason for this extra step (which a lot of people don’t think is necessary), is even the craziest and weirdest people can sound good on the phone.The in-person coffee meeting shows: 1.) if they are willing to invest in you, and; 2.) allows you to really get a good gut-check on them and make sure you feel good about proceeding. 

Inspection contingencies, appraisal contingencies, loan contingencies, etc. that allow you to back out without losing your earnest money.Most lienholders want you to be able to document that you have the money and are ready to go.

A couple of you mentioned the importance of not getting into negative cashflow on a particular property: while I don't expect to get into that situation, does it matter if a property is in negative cashflow if it allows me to purchase a new property, and the combined income from both properties has a positive cashflow overall?

I'm able to do this as a broker, I would venture to say that larger banks/lenders may not allow their LO's to accept your credit, and may require a pull even for a prequalification. 

I want my kids to be able to pursue their passions for whatever that may be but have the firm foundation of real estate/passive income that allows them to be free.

it seems like the partner with the mortgage is taking on additional risk and not allowing him/herself the opportunity to finance other deals in their name.

They recently passed a law called "Ban the Box " where employers are not allowed to ask job applicants about their criminal background .

Several of my friends in DC have ended up losing money when they were no longer allowed to rent their property out.

They did offer to allow him to transfer the deed back into his name and keep the loan, however due to his circumstances that is not possible.

Additionally they are his employees.You do not want these to be your tenants and any advice you receive suggesting you could try them out will only lead to you non renewing at some point after you start losing money and sleep so you are best to start right.Do not, I repeat, do not allow the present owner to sign a binding lease with them.