I don't know about tenant/landlord laws in Connecticut, but you may want to take that into account too.The odds of your tenant fighting a small charge for the carpet--slim, but every dealing you have with a tenant builds a public image of you (not to mention speaks to your character).If the carpet is only a year old, then I, personally, would charge them replacement cost... any older than that, and it would be a depreciated replacement cost.The fact that you were going to replace the carpet (though it may speak to the carpets age) wouldn't directly have any influence in my decision to dock the security deposit.

If a deal goes wonky and Don speaks from years of experience the first thing an attorney writing you a nasty gram is going to say is you sold a security without a license..

I would also speak with a few people on BP's who loan their own money in Florida, because there may be laws or rules that you need to watch out for in your area.  

The trustee is trying to sell it.Need to speak to my Title rep, but also not sure why it can't be an insured sale.

Generally speaking, an LLC limits your personal liability and protects your personal assets, but every state has different laws, so you should consult local counsel for the best form.

I look forward to speaking with you.  

You will want to use the same lender with both so that on the purchase they do not have to wait a zillion years for the VA to process that the old VA loan was paid off and the entitlement has returned.

Karen:I cannot speak for Ohio as there seems to be some variance in what is permissible and/or desired between jurisdictions.   

If you don't get a referral for your area, start calling the title/closing companies in your area and just ask to speak to a title agent that handles closings and ask them if they'll be able to facilitate a wholesale deal, whether it be an "assignment of contract" or a "double closing". 

I cannot speak for Canada, but the crap you posted is dangerous in the United States in general, and even more dangerous in some states.