Municipalities are sometimes concerned about setting a precedent and this is a way that some try to work around that.Hope this helps,

My biggest concern is just the fact that we might not officially go under contract on the house we like best until a few days after we close on the first one in a few weeks, with our FHA loan, and we definitely won't have 20% to put down on either. :-/  Definitely appreciate your advice and will see what we can find out about investor friendly loans with our broker.

My concern is the $20,000 in arrears, is there anyway around paying it?

The tenants are all lovely people, though they seem to be concerned about 1) the condition of the garage, 2) the fact that the windows all let in cold air (by the look of them, they're probably as old as the building) and 3) the lack of landlord response to their multiple other (small) concerns about the property.

Thanks both of you for your suggestions, but only concern i have that it will be difficult  to refinance the properties if the properties own by LLC. 

It seems like the norm for most of the area is that the landlord pays water in small multis but you could set the water up in your name and bill tenants to avoid any lien concerns. 

Liability concerns are very real.

@Jecarl Viray If your CPA told you that you need to form an LLC in order to deduct rental expenses, I'd be more concerned with getting a new CPA than worrying about an LLC.

To break it down even further, if you sell or refinance within, let's say, the second month, you'll be responsible for paying an additional 1-month of interest to make up the 3 months.Hope I explained that well, feel free to message if you have any questions or concerns.

One of the best features of the mobile app for anyone in an active home search is the ability to filter on upcoming open houses.