A lot of landlords don't consider application/screening procedures until after they've made a compliance violation.There's certainly nothing wrong with offering rent concessions for a longer term lease.

I stuck to my guns on their leaving, but I assured them their deposit in their hand in cash the moment the keys were in my hand. 

No problem, we roll with it, some excuse about City water and City inspection and compliance issues, but we were assured it was no big deal.

The bank (I assure you) expects their money regardless of your tenant situation.

You need to be in compliance with the new Dodd-Frank lending rules. 

I assure you there are people in your area of nc that have that kind of cash to loan.

I can assure you, I do not plan on cutting corners, just want to make the best decisions possible.I know it has been recommended by all on this thread that I skip the LLC and just purchase it personally and get an umbrella policy for liability protection.  

Attorney:  hey, we will issue it, but it takes another week or so, but I spoke with both underwriters again who assured me clean deal.  

@Matt Cariello most likely it isn't a problem to accept investors from other states but it does add an additional layer of compliance. 

Also interested in said attorney reviewing the LLC minutes and other details on an annual basis to ensure compliance with LLC and real estate law for single family homes.