If you have all those bases covered, conventional all the way as it will protect you in the long haul against fluctuations in the market. 3.

Ask a lawyer ANY question and the answer will always result in a recommendation which will require some legal service (and their fees).Don't get paranoid on "Asset Protection" - - just forming the legal entity and getting title in that name does not inhibit lawsuits nor insure you're immune from losses.Then there's the practicality of getting a loan in the entity name - - not trivial. 

The paint will protect it, so tuck pointing and repainting should resolve the issue.

And they have it classified as commercial, it appears, so I'm far from certain that Dodd-Frank, CFPB, and the like, would protect you the same as if it were residential. 

Good points, A good lease protects all. 

At today's rates, that's only a $60-$70 per month.Obviously, for a flip you have to protect your profits.

I have thought about evicting him because he never pays his rent on time anyways, but if he is mentally unstable, I know there are laws in CA protecting his rights, so I'm not sure how to go about this.

At least from the buyers perspective to add a protective element.2) Moving on is sort of complicated depending on how your agreement was drawn up.

Should we start an LLC for protection and purchase the property under that LLC?  

@BJ @BJ LaVelle we also do landlord protection, so yes I have seen an some companies.