I almost at a point where I don't even bother with home inspectors.Some other common issues with older houses, particularly if you will be renting:  lead paint, asbestos, mold (although I find older houses are leaky enough that, as long as the roof drains well, air movement through the building is good and prevents moisture buildup), steep staircases, narrow hallways.But you MUST MUST MUST do a walk-through with an experienced contractor (one who specifically has experience renovating older houses/buildings) prior to placing an offer.  

We are rooting for you.

If you are the buyer, you will want to record you option with the county clerk to put a cloud on the deed to prevent them from selling the property to someone else.

Account ClosedMark is referring to the prohibited transaction rules which would absolutely prevent you from putting an asset you currently own into your IRA or 401k.You can invest a self-directed IRA or 401k into real estate, but as a disqualified person, you would not be able to transact with your retirement account.

You will have lots of BP cheerleaders rooting for you no matter the damage done to the sellers, lies, deceit, and dishonesty.

let me address the core root of your question: how to build your buyers list.REIA groups are a great way to meet local people in your area - try to make it to as many as you can and be very active in the group.

I do not know of any laws preventing such an arrangement and I'm pretty sure this is done all the time.  

Encourage the tenant to make certain the litter boxes are changed often to prevent accidents (I keep mine in a bathtub in a bathroom we don't use).  

Some other cities are highly troubled due to corruption or long rooted issues (Waterbury), and some of those are further along to improving (Bridgeport).  

I am in the process of doing my due diligence to prevent dealing with inexperienced lenders.