If the investment is taking large depreciation up front and you need and can use the write off, then investing in your LLC or personal name would make a lot of sense. 

You need to know his list of debts and assets- write them on a yellow pad for now.

You do not have to have things in writing.

He has free templates for letters of intent that can be used to write a contract once the seller agrees to the terms.

Write some letters or cold text instead of cold calling.

It's free, simple, and you can write state-specific leases through it, although BP has some solid places you can get leases as well.

Stephenson, I greatly appreciate that you took the time to write back to me and to answer the question for where I would be interested in Colorado, I want to say mainly around Cherry Creek Area because I want to make this a rental property and am assuming that the rents in this wealthy area can be stretched out to its fullest potential for the first investment so that I can pay off the loan faster. 

The rest you write the question # next to what book you'll need to reference.

In theory this gives me the deepest conversation first with the seller on the rehab costs, permit issues, major items etc, to be in a position to negotiate an appropriate price.Down sides is....I would spend a lot of time and money on inspections on homes that may not close and my realtor is writing lots of contracts.Up side...I get first right of refusal and a strategic advantage in a competitive market.Is this approach legal? 

Disclosed in writing to the sellers upfront.