In Canada we aren't allowed legally to take a deposit for potential damages, instead we take first and last months rent ahead of every lease . 

Limited Liability on you personally: If you were sued (a tenant is injured on your property) or had a legal case against you as a landlord, it would be against the corporation and not you personally so it can assist in protecting your personal assets in this type of situationThe title of the property will be in a corporate name but you, the investor, will be required as the owners of the corporation to also provide personal guarantees.

Tons of legal advice.

If the shower was fully built before it was caught that it wasn't legal, I have serious questions about the ability of the inspector who signed off on the rough inspection (or if he got one).

@Devin Borders - I can't speak to if there is a legal way to both assume/pay their mortgage and fully protect yourself, but I am sure there are others that can.One thought I had was if this property is off-market and ~$220K in value, I'd offer much less for the following reasons:  If you can do this without realtors (if it is not currently listed with one), that would save the sellers 6% in commissions (~$13k).  

I also send a Text Message.The mere act of sending the Notice to vacate by  Certified Mail - Return Receipt Requested is Legal Proof of Notification in Texas.

My question is is it wise to keep the HELOC at prime plus .5 a point on initial down payment, and renovation costs estimated to be around $35,000?

In our initial underwriting process we always call around to the various comps to compare vacancies and rental prices on the various unit sizes. 

Have your tenants initiate the call...

If you agree…Should my “Initial Investment” for the calculation be the $50,000 I earmarked to invest in real estate?