If it is a single member, then by default it will be disregarded by the IRS unless you elect to have it taxed as an S or C corp.If it is a multi members LLC it will be by default seen as a partnership, unless you elect to have it taxed as an S or C Corp.Depending on the status you choose, your state tax treatment will be different too...

I think even the laziest Investor would at least send someone to drive by the property to see the if meth is involved in this endeavor, but believe it or not there are a few sources that will keep records of properties where a drug lab ever existed.

It had enough water rights to be able to have our own water treatment plant as well which will be a nice income generator for many years to come.

You get $30k from some random unacceptable source (friend who isn't family gifts it, drug money, Al Qaeda, sold a car or painting but didn't do any paperwork, you just walk into your bank with $30k cash and deposit it, it makes zero difference in the world, unacceptable is unacceptable).Your balance is $80k.You spend that $30k, doesn't matter on what.

Added a new roof, termite treatment/inspection and then on to paying off the original owner after refi.

Drug abuse?

We suspect drug use, but obviously can't prove anything. 

The seller's attorney does not care where you get the money be it cash, financing or drug deal. 

@Romeo Kaado how are you im currently planning on attending a real estate class for my liscence,but due to my criminal past im scared to lose my money because the real estate commission is not giving me a sraight answer.My history only consist of drugs distribution,no sex charges,no violence, no theft,no robberies,nore fraud.Will that disqualify me from getting my liscence because i cant really afford to lose 400$

Tax treatment gets a little complicated when two individuals buy a multi-unit property and one of them occupies a unit.