If for a example there were unpaid taxes, unreleased liens against the property or problems with the legal description of title, this will ensure protection for any claims or legal fees that arise should you run into these problems.

In terms of getting in contact with someone in the city to speak to if further questions arise, is there a number or contact that you have had the most luck with?

There is no need to force the deal, just wait for the right deal and opportunity to arise and let the prices cool off a bit.

Is there a seller side only HUD that will prevent issues that may arise with wholesale closings?

Will have to add those names to my basement list.I have not tackled a project with a serious foundation issue, however think there is a lot of opportunity when those arise as it scares most people off.  

Even if he is your brother, best friend, mother, parent, or worst enemy, issues arise in the future, it is not is not a matter of IF it will happen, it is WHEN it will happen.

I hope we don't have to think about major stuff this time, but great advice when the situation arises.

Being this my first note purchase experience, what are the risks and potential complications that could arise from this?

I am willing to consider buy and hold if the right no/low money down situation arises.  

In terms of hiring a property manager, many property managers are fine managing just 1 property (and since you typically pay a percentage of rent it really shouldn't matter to you).If you want to manage it yourself there are a handful of online landlord / property management software's you could use and access your account anywhere with internet access.You will still need someone (either a friend, or, at a minimum, vendors) you can count on locally to deal with any issues that arise when you are out-of-town.