Since an IRA holder may never personally guarantee the IRA's investments, you're only left with non-traditional (non-recourse) financing.

I get that some people aren't on top of their finances and misuse credits cards.From the posts I've read I see two potential problems. 1- Disputed charges will typically favor the card holder (i.e.

It's all in the eye of the RE holder...  

Its prescribed by state law, usually will go to lien holders in order of lien, state, local government, IRS, judgments, etc., if there is money after that it will go to the former owner or the heirs of the former owner.

BP, Craigslist, call bandit signs to network with wholesalers/rehabbers, send out a flyer to recent cash transactions, go to your local real estate investor meetings, network with realtors/other real estate professionals, mail to a list of high income consumers, mail to a list of licensed rental holders in your county, etc

The GC can cause you a lot of problems because you have E&O insurance.E&O typically excludes the insurance holder when the insurance holder is a principal in the transaction. 

But the OP is a note holder and everyone here has been giving rental collection advice, most of which I'm pretty sure doesn't apply.

You create equity by having the seller sign a power of attorney to you so you can negotiate with the 2nd lien holder for 5cents on the dollar or what ever you can get, then and only then do you close on the sub to purchase, bring current the 1st to stop the foreclosure...

The Kitchen also has tile and new cheap cabinets and counter tops.This would be my second real estate purchase and my first investment deal.So,Do experienced buy/holders avoid old houses like this?

Protections for "lender" is being on title as lien holder, title insurance, hazard insurance, consulting an attorney.