Welcome Roger, sounds like you are off to a good start.

At the moment I'm in the process of educating myself before I begin Investing which will be either by November or December 2015.I'm going out of town to Vegas for about a week to learn from my Uncle who owns his own construction company.

You should also look up the Capital REI group on Facebook; which is managed by BP members @Roger Lin and Justin Pierce. 

The South Sound meet-up is the week afterwards I believe.I do not yet know of any regularly scheduled meet-up in the areas you're talking about...I believe though, that @Kat Rogers, @Timothy Daniels, and @Scott Price all operate out of the Oak Harbor/Burlington region.

Hypothetically your rich uncle could loan you the money and secure it against the house legally, but he cant be engaged in that activity as a business without the proper license and without following some pretty strict rules.Very few HMLs are licensed to loan to owner occupants. 

So there is really no active/profit income all along the way, just building wealth/equity, anybody knows what does Uncle Sam says about this?

@Billy Rogers@Wayne Brooks is right about the "quiet title" avenue.

One of my wife's uncles was in charge of one of the properties which is zoned for commercial/residential, it is a 1708 Sqf office space/small warehouse on .36 acre lot.Which with some research it can be split into 2 lots.He let the property go to the dump, needs a new metal roof, and gutted, replace plumbing/bathroom, replace electrical etc...Now my wife’s Aunt is in charge of the estate and she was the one who approached me.She said they will "sell" me the property for $30K (estimates from Real estate agent say property is worth $43-$53K in current condition) Which then I could clean the property up and try to resell with the improvements.Now if I did replace the roof make the inside look nice and clean the overgrown landscaping I was told (real estate agent) it could get about $60K, but there are back taxes and liens on the property as well.Plus closing cost for when I sell it, I have run the numbers and it seems that I would MAYBE make $3000-$9000 conservatively.But I am real concerned over the fact that it is used as an office/commercial, and wouldn't this limit buyers?

I have an uncle that lives in Elgin that's been doing historic rehabs for 40+ years.  

Thanks again,Roger