If it costs 15-20k to fix it up how we want and without spending my own capital, my thought is to rent it for a year cheap at 1250 per month...as is and use that cash a year from now to dump into the home after my tenant pays for it. ;)So here's my question; if we rent it out, we have a 24 foot above ground pool and Jacuzzi in the backyard.

The plan was to purchase the duplex and than put it under an LLC to protect my asset.

I could also consider putting an ad Fee Structure: Property Management Fee:7% of monthly rent collectedLeasing Fee:50% of one month's rent, which includes Free Eviction Protection, a 30-Day Rent Guarantee and a Quality Tenant GuaranteeRenewal Leasing Fee:2% of annual gross renewal rentMaintenance Fee:Billed at invoice cost plus 10% administrative mark-upProperty Setup Fee:NoneMarketing Fee:NoneProject Management Fee:10% of project costs above $5,000

That was a big chunk of our savings and my wife wasn't very happy with me spending it.

I would contact the Dept. of Aging and Adult Services or Adult Protective Services or its equivalent in San Diego and report this situation. 

I both sell and purchase properties via the lease option method and one of my protections as the lease option buyer is knowing that the seller / owner cannot sell or refinance the house out from under me as long as I have that recorded option against the property effectively creating a lien. 

Is there a way to do this while legally protecting myself from liability (i.e. having them sign a waiver)?

People spend a lot of time and effort trying to find "subject to" deals.

The best thing to do, is get educated enough to explain to private lenders how you will protect their investment with you.

Spend a few hundred hours in home depot.