Whichever way you go, insurance is the first firewall and you'll need plenty of liability coverage and an umbrella liability policy as well.On the LLC, many assert that it can easily pierced by a savvy lawyer, though I've not seen any good examples of this occurring.

But at the same time scary here some of the issues:-Wiring/Electric issues: there were double taps and too small cables used-Standing water in half of the backyard (every time it rains harder according to the tenants)-One of the AC units is from 2003-AC air ducts are moldy-AC pipe in addict are crushed, insulation broken, taped with lots of air leaving-No drip pan and turn off switch for airhandler (2001) in one unit-Too little insulation-Moisture in the addict-Missing firewalls between the two units-One unit has copper pluming the other unit has recently received PEX, but where the wall was cut open to replace plumbing has not been closed and you can see lots of mold, mice droppings -One of the water heaters is sitting in water and mold on PVC and is rusting and leaking.

With hackers always devising new tricks and techniques to defeat firewalls, banks that do go mobile in a big way will also face security challenges in a big way.

Repairs needed are as follows:Install 3 firewalls in the atticReplace the 4 back decksReplace 3 wire boxesReplace 3 walls with wood rot damage - 10 ft x10ft sheet rockSmall facets and leak repairsDriveway concert patchworkFew roof patchwork.I just don't know what the expect with the FHA requirements and how to get a loan from them with all these replacement needed items. 

Having the property owned by an LLC adds an extra firewall the opposing attorney has to get through.Overkill helps me sleep better at night.

and depending on configuration of apartments that can mean firewalls between units, all the way through the attic and roof. 

Firewall generally needs to be uninterrupted through attic these days.

question in the back of my mind.The investor agent may have a different business strategy than yoursSome agents, w/ multiple streams of income, may have firewalls set up between the different parts of their businesses to ensure there's no conflict between a client's interest & their own;  or even between the multiple clients pursuing the same propertyRegarding "what's wrong w/ it" You should have that question in your mind on every property whether it's an investor agent showing you the property or not.  

So you will want to plan on some renovations in your other units and a little bit of lost rent.You will also need to provide fire walls/ceilings between all of the units.

Lenders have this firewall in place to protect themselves and make sure their borrowers have steady income.