Secondly people calculate risk at a premium.

Bottom line, decide on your engagement and risk level first, and then look for an investment type that suits your needs best!

Cash flow is just one part of real estate investing. having a mortgage certainly makes you mitigate more risk, but it can be used to make a LOT LOT LOT more moneythat's why it's called 'leverage'

Am I confusing something or would my personal house be at risk?

With the risk of making an overbroad statement, I frankly wouldn't trust a title company that doesn't require the parties to pay double transfer taxes.  

My question is, if the person that was bit chooses to sue, am i not involved since it happened prior to my acquiring, or are you still open to risk.

Syndications are similar to REITs but, on average, have higher risk as they are chasing lower quality assets. 

it's all about your risk tolerance and overall goals. 

If he works outs well, perhaps move to paying per task/job.I would make sure to have an independent contractors agreement (ICA) signed, ensure that he has insurance (at least liability) and get him to sign lien waivers upon payment.If he doesn't have workers comp insurance (and you don't want to get it to cover him), I wouldn't let him do anything that is "high risk"...

Risk aside, bringing the cash to the deal is the easy part.