But after reading articles like this https://bang.ro/online-gambling-in-the-usa-is-it-legal/, I realized that the guy didn’t do anything so bad (except getting himself into terrible debts).Back to my question.

No agreement covers what the managing partner can do - go gamble at craps your odds are better at making a return than in a real estate partnership.

You’ll need to talk to a QI to make sure the REIT you have chosen qualifies as many/most don’t.

I have not chosen my market yet, but I have been actively learning about Indianapolis, Indiana, and or possibly Tulsa, Oklahoma.

Not worth saving a few bucks on a gamble. 

If that is too big of a lose to gamble, I would walk away.  

However it could be worth 170k-180 if everything was fixed and I think I could get it going as a functional rental property for the purchase price plus another 20k and some blood sweat and tears and maybe could get it reappraised in a year and do a heloc, but I could end up being 160k in when you factor in lost rent and is 10-20k inequity worth the gamble? 

I'm starting to think the seller got previous offers that were lower, and mine was chosen only because I offered the actual 225K.

I started on this, so I have chosen to stick with it and not try to switch everything over. 

Buying without title insurance is gambling.