@Bernard Castillo I don't know specifically about Than Merrill's course, but he is really know for flipping not tax liens.

Hardest thing might be finding a fair and legal way to get this off your friend's back and onto yours (but there must be some specific reason he wants out and doesn't want to list it.

This way instead of filing Schedule C for the LLC it will file it's own tax return separate from yours and will issue K1 for both yourself and your spouse.An alternative to that is you can hire your spouse to work for you and pay him salary.

If they start a fire or break a pipe then you would likely have coverage (review your policy for specifics) but if they are simply negligent or messy then you will have to pay out of pocket.

As to the hard money lender thinking the deal was "bad" - it never got to those kind of specifics - they have an FAQ on their website - "no scores under 640".

I have a business idea attached on the back end of it for value add to the tenants since it is a very specific niche market that I am targeting. 

The real estate license that I'm looking to obtain will be specifically for flipping houses.

Likely not.A self directed IRA is an equally viable means to diversify existing retirement savings into real estate, and you do not need to change plan formats if 2-3 years down the road you get tired of dealing with eBay and are no longer self-employed.The IRS is not specifically targeting self-directed retirement plans.  

So I have been doing quite a bit of researching on market cycles, more specifically emerging markets.

Most of this piece probably won't focus too much on specific deals, but rather, on my experience throughout this (ad)venture, starting out as a reckless and aimless 22 year old.