Have you heard of a self-directed IRA (or Roth IRA) these accounts follow all the rules of normal IRA's and Roth IRA's, but they allow you to invest in alternative assets such as real estate, notes, mortgages, private placements and even precious metals. 

I know almost nothing about the market there, but I hear about it all the time in various conversations.

Courts would rater see private landlords go bankrupt first. 

Conversely, can you add a bed or bath? 

how do I setup and llc to receive private loans to flip properties?

My wife and I are about to close on our first property a 2 family in NYC and I'm already thinking as to how to get the next house. We have a family member that can loan us money at less than 3% the problem is that the...

Even though you may give them everything in writing, you should also have a clear conversation, so they understand the details. 

I have had many conversations with him.

If you are ready for sub-to, have private lenders ready, friends with self directed IRAs, friends who you can wholesale to and belong to a large REIA then you will be able to do something (and monetize) with just about every deal that you come in contact with.Its like the handyman who owns a hammer.

Ask me how I know :/I'd highly recommend reaching out to the tenant and having a conversation.