It is simply up to each person's tolerance to risk to decide how much exposure is too much, and therefore the need for subsequent properties to be placed into a new LLC.  

@Lawrence Barnes  members can either contribute capital or loan the LLC money either way. you could simply contribute capital and in your operating agreement it calls for a distribution to you monthly that is separate from the normal running of the business. 

There will be somethings you simply are not allowed to touch, even if they need to be touched.  

Bank regulations simply would not allow FDIC-insured money to be invested in such a poor credit risk but the beneficiaries of the deceased man's mortgage deserved payment so they sold the non-performing mortgage to a Boise " Private Note Purchaser" for a small fraction of its face value because the heirs lived in a small community and did not want the infamy of being the ogres who would compound the misery of an unlucky family by seizing the home through foreclosure after the occupants had suffered the loss of their son to childhood disease.The Boise opportunist had no such inhibitions.  

In your LOI and PSA simply include language you will assign the contract to your SPE before closing. 

Pretty simply response to that - don't invest in units that are under rent control or rent stabilization programs.I've had a ton of success investing in MFH (3 and 4 family buildings) in very specific New York City neighborhoods - Bed Stuy, Bushwick, and Ridgewood in my case.Investing in NYC is not really any different than in any other part of the country with the following exceptions:-Cost of entry is very high. 

Simply get a Power of Attorney from the seller to be able to access bank accounts regarding that particular property only.

These are not always readily available, but when they become available they could turn out to be terrific buys.I've always focused on value add and opportunistic investments in commercial, but having developed an interest in MF recently I've started to uncover more and more MF value add properties in the markets we're focused on for acquisitions.Buying them requires more hands on commitment other than simply management, but the value enhancement can be significant. 

If you're unsure about the property, I would get the inspection first and then put down whatever appraisal/application fee the lender is requiring.And lastly, I have a feeling you're right: $5k is not going to go very far, and even though I don't know a thing about this house, I suspect you're going to need more than that simply because $5k won't pay for much work.

It simply a matter of going through the probate process and having the deed transferred to her name.