I think the square footage is way under quoted since the previous owners converted an attached garage to a master suite and built a mother-in-law suite in back of the detached garage. 

I hired him for a quiet title law suit against me.

Do a background check on the contractor , because as a contractor I do them on my customers . ( liens , judgements , criminal , lawsuits ) .  

This is in prep for any lawsuits.5. 

At this point the taxing authority has already won a foreclosure lawsuit in district court.... you could potentially make a deal with the seller to buy it before the sale, and as part of that deal pay off the taxes, attorney fees, and penalties before the sale, but the seller will also have to generate enough proceeds to also pay their IRS lien. 

I figure I can get a loan of approx $1.25M and build / rehab a decent property with that money (where as simply buying wouldn't get me much).Ideally, I'd get a 2/3br 2ba in a decent neighborhood and build an in-law-suite on the property, with the plan being to move into the in-law-suite and rent out the home.Neighborhoods I'm looking at are in NE LA: Mt.

Paying cash for an investment property gives you a horrible ROI on your investment and makes you a target for lawsuits. 

Hey guys, I am in the finishing steps of purchasing my FIRST rental property (a duplex with a mother in law suite in the back yard).

If you were to get sued for any reason the LLC would protect the members' personal assets from being seized in the case you lose your lawsuit.

If acting in bad faith, the buyers agent would be at risk of a lawsuit also, it would seem.