We are paying cash to him every week or so when he sends bill. 

The hang up is getting deals formally drawn up.One idea:- I buy the property and pay 25% DP, then they provide capital after the closing and I pay them P&I over 5-10 years.

I dont think I would have any cash flow from renting after paying me mortgage.

You might not cash flow right away, but even just offsetting what you were paying in rent while building equity, getting tax benefits, and learning how to be a landlord is a game changer.

That way you have it available but aren't paying on it right away. 

Our tenants pay $2,700 in rent and the mortgage+fees comes out to $2,360.

Is it worth to pay that much for 1:1 coaching for 6 months and a laid-out course? 

Regarding your other questions:  - If the going value is $260/SF, why would you pay more than that?  

My attorney stated not only must the person who failed to pay taxes be given notice but also the squatter as well since our suit names persons who were in possession of the house. 

The best strategy is to buy properties that need fixed up with hard money/HELOC, fix them up, the refi out to pay back your HELOC/hard money.