Does Bigger pockets have any house viewing checklists that I can use as I view these properties?

Quote from @Patricia Steiner: There are several lenders who offer low/no closing cost options for first time homebuyers.

Would love to connect with you and explain our options to advance your projects forward!

@Ben Corby Your option 3 is not an option, if an attorney told you that, they obviously were not a tax sale/real estate attorney. 

Have you listened to any of the Bigger Pockets Podcasts?

To me at my current knowledge level, this deal only works if taking over the loan - to limit the out of pocket money to acquire the property since the outside reno and new septic would take up the bulk of rehab costs. 

My view is there is more protection on a wrap than a sub to and with the right disclosures and underwriting can be an alternative option. 

There's zero reason to do this when there are plenty of options to avoid it. 

Assuming you go the HELOC route, another option to reduce your costs assuming you have decent credit is to look at credit card balance transfer promotions.Back in 2003-2004 I had HELOCs on my investment properties and interest rates were increasing.

A duplex is a great way to start because that renter will help with your monthly out of pocket costs and it's a convenient way to get into real estate investing.