How much will be the interest rate, and terms of the loan. 

I don't think you will get anyone to loan you money on tax liens/deeds. 

The loan would be $1M+.

Stop reading if you want.2) I couldn’t guess what “There is a 6 months of grace period before interest payment begins” means.3) They call their $3555 charge a “Loan Fee,” stated a few lines up as 2%. 2% of $235,000 (loan amount) is $4470.4) Do you seriously believe the loan fee, “… IS 100% REFUNDABLE IF THERE IS ANY DEFAULT FROM THEPART OF THE LENDER OR IF THE BORROWER CHOOSES TO TERMINATE THE LOAN.”5) It’s okay to pay an appraiser directly.

If you aren't going to be living in CR full time as you try to execute the deal I do not think it is physically possible for you to obtain a loan from Scotia Bank and not worth your time to try because the rates are so high. 

Converting properties to multi-family is considered extensive rehab and those programs are a little more exclusive than the standard bridge loan programs. 

The issue was a person sold their home subject 2 and the person who bought it stopped paying.

The deal will leave the seller at your sons mercy for decades (the life of the loan).

Private money and personal funds.

You have a bigger loan, but not a bigger tax basis.