From what I understand the home would be in my name and offer very little assets protection.

Try understanding what your buyers want, and then go create that supply. 

If I understand you correctly this birddog brought you a willing and able buyer so you as the seller should pay for his service unless he had other arrangements with his buyer. 

Once you find the best candidate(s), walk the job site with them start trying to understand their side of the business a little.

I understand your concerns.  

For example, you could buy the house subject to the existing financing (i.e. taking over payments) with the understanding that she will be responsible for payments for up to the next three months while the house is fixed up or until you close.

If I am understanding the above correctly, does this mean that we should buy a more expensive property for our first, perhaps a triplex with three income-producing apartments, since that is our one opportunity to pay only 3.5% down?

My ultimate goal is to purchase and develop land in the ever receding outer exurbs in my region.Here is a little about my world of late: Home Automation and Security technology is developing at breakneck speeds these days and staying on the cutting edge is a full time job, especially when it comes to understanding the vulnerabilities associated with these new technologies (think "Hackers"...they really, really, really do wreak havoc..no joke).

.#5 - Basic understanding of Accounting.  

If, in case of a default, I were to enforce the note, it is my understanding that before taking the property over, I will have to pay off the first mortgage.