@Kevin ScottFrom what I've been reading... cash flow is king.Buy for cash flow, hope for appreciation.I personally would be happy with a fair market deal in a GREAT location as long as the cash flow/debt made sense.There are other ways to add value/force equity.

either way he pays tax on the gain.If he sells you the LLC as @Carl Fischer indicates the LLC stays in place as well as all debts contracts etc of the LLC. 

Give notice to the tenants that rent will be increased to full market, with proper legal notice, and let them decide if they are staying or going.

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...

My roommate pays $600 and I am letting my brother stay with me at a discounted rate of $150 (he's buried in college debt) So I am breaking even every month instead of making a profit, but it has been sweet not paying rent/mortgage.

I am really scared of debt .Would it be better to get a hard money loan or a get a HELOC for 10 to 15 years so I can start investing ?

You can deduct legal fees and repairs, but not lost rent.

Pay your short term debt in time to establish credibility.

He stated that he is legally unable to harm either party, but doesn't have that fiduciary responsibility. 

Do not include the debt service (your mortgage paymet) in this calculation.