So my thought on this is that I wouldn’t (personal preference) engage in a subject to transaction with anyone other than an experienced investor on the other side of the transaction.  

Choose a bold color that complements your home's exterior and adds a pop of personality.

Hey @Fadela Zaoui - if its a court ordered sale... unlikely sellers would entertain seller financing, but the answer's always no unless you ask :) I recommend working with your broker to figure out what the sellers really want - sounds like one of the sellers wants to cash out so they may not be the person that wants to do seller financing BUT the other seller may be open to it.You could also potentially look at a joint venture option where you just buy out the seller that wishes to sell her portion, and partner up with the other equity holder who now gets to retain their piece of the pie. 

Other options I would consider is renting each individual rooms (this generally increase the monthly cash flow vs renting to a single person).

Completely lock/key separate and 0% owner personal use.

Section 121 allows a taxpayer to exclude $250,000 of gain($500,000 if married filing) joint on the sale of a personal residence that was lived in for 2 out of the last 5 years.

I setup an LLC for my purposes of renting my first home and I am wondering if I need to transfer my mortgage / title of my first home into my LLCs name instead of my wife and my personal names. (1) Is it required for me to transfer the ownership of my first home to my new LLC?

I'd be delighted to make a personal introduction, and I'm just as eager to discuss life and real estate here in sunny Medellín, Colombia!

I purchased it under my own personal name on this first one, cause we were competing to get there quick and my EIN hadn't come in yet.We do our own taxes but I have no clue what to put for this house purchase. 

Merely my personal opinion, no.