But if he sells you the LLC he loses the opportunity to do a 1031 exchange and defer tax on the sale of the real estate because the real estate is not being sold - only the entity which owns the real estate.If he sells you the property then the LLC could do a 1031 exchange. 

It is being sold because you can see value in the property.

The property itself needs repairs which after having my contractor take a look he gave me a rough estimate of $55k.The property is listed at $175k and similar homes (in mint condition) in this area sold for $300k.

For Sale by owner, Sales Agreements.I’m curious to learn what clauses or protections others builds into their sales agreements to ensure (or allow for legal action) if a private seller sells their property to someone else / backs out of your deal once already under contract.Fortunately this has never happened to me and the last 6 properties I bought were from private sellers without a real estate agent or attorney, however It could and likely will happen at some point...

I had a couple properties like that and I sold, just to avoid the constant calls and repairs.

Since you say you are "really scared of debt" make sure you only use the debt to buy assets that can be sold to pay off the debt.

I sold it ten years later for $239,000, but If I had found a way to hold onto it, the same house is now worth over $750,000.

Just sold my first Rental property and looking to re-invest 1031 style in the Florida Keys, specifically in a vacation rental.

Try short term owner financing #1, #2 Private Money to close #3 Hard Money.The fact you put $ into the deal before closing is not a good sign but eh- it happens.

When using private money for investing in a buy and hold property how is the deal structures typically?