New built for starting out could be a bit challenging.

That said, there's quite a few homes in that area that have that challenge (no driveway/street parking).

Thank you very muchJaša This is how traditional banks, private credit funds and anyone in the lending space works.The challenge you will have is finding someone to give you money at X%. 

You'll want to talk to a local probate attorney to see how much time that could take.If the squatter is not making mortgage payments, you've got perhaps another month or two before the lender begins foreclosure proceedings.In your situation, I would approach the squatter to see inside the property to assess the condition.

Challenges?

The challenge is, I’m not familiar with the local market—or the Mississippi market in general.Does anyone have insight into the market in this area or know of investors interested in properties in western Mississippi?

Unless you're up for another challenge holding and renting creates headaches and PM "fun" you don't have time for. 

Removing a lien is challenging because you need the person who placed the lien to sign off to remove it.

Are there any tax or management benefits to this approach?

Challenges?