You get free exposure to people who are in your target markets.

a salary before taking any money out- Self employment tax is not due, as the only income of the LLC will be rental income- If the LLC shows a loss in the first year it will be easier to carry this over to the next year if not taxed as S corpThankful for any advice!

It is a lot easier than I thought, but unfortunately the lot I was looking at was about 500 sq ft too small to divide 3 ways and dividing it into 2 didn't make as much sense.

It is easier to drive through some neighborhoods an show someone than it is to describe. 

I'm targeting properties in the $100K - $200K price range, with the intention of using traditional mortgages for financing.From the outset, I do not plan to set up an LLC; first, because I don't think most banks will lend to an LLC, and secondly because I don't think such relatively small investments will arouse the attention of ambulance-chaser lawyers. 

All rents and expenses go through these accounts and it makes it easier at tax time.

If you have a general idea of the returns you'll be targeting with the smaller purchase nearby simply compare the two from the ROI and risk involved.

My best tip after you identify potential target markets is to start by finding an excellent property manager--during your interviewing process, you will also get educated on the area and what to expect.

In order to make payment easier, I am considering giving the bank account number so that deposits can be made directly.

You might also confront them about the person they moved in, but the easier issue to get them out on would be smoking.