You might be able in a better position than many others to either buy it from the estate or assist the estate in finding a viable way out of the foreclosure by a) buying it from the estate or b) arranging its sale to an investor (and hence earning something for the efforts).There seems to be some equity there to work with initially, assuming there aren't any other creditors with claims in the bk petition.

Account Closed YOu need to be a CA broker to manage property you do not own.but if its family property you can probably set up some sort of arrangement that will be just fine..

I arranged for (and she paid for) all new carpets and refinishing of the floors.  

@Douglas Dowell A quid-pro-quo lending arrangement such as you suggest would also be a prohibited transaction if the IRS were to see that - which if they audited either individual they most likely would.It is best when working with IRA funds to avoid any situation where you are thinking "it sure would be nice if I could use IRA funds for this deal I'm involved in".  

The caregiver was not family and the old man did not want to disinherit his biological heirs  so he provided the home at a modest price but he made the estate the beneficiary of a modest  private money mortgage to provide a monthly remainder for his own adult children who already owned other residences in the same community.All parties were served by this arrangement until the nurse's own son developed leukemia brought exorbitant demands for both money and time causing.  

Sometimes you can arrange for a city inspector to come out and inspect your home.

If they want to get into the fix and flip game, they would not have to find the deal, come up with the money for the house, and market the home for sale.I met a contractor that was interested in this type of arrangement on a 3700 sq ft house I put an offer in on and we disagreed on the kitchen materials.

It also gives some tax diversity as you could sell a small chunk of index fund/ETF (<1% of portfolio) but generally have to handle/manage a big tax hit on 100% of a single family home.Perhaps good idea to arrange line(s) of credit (can be both low cost and low interest) while income is still high.I like the recommendation of converting rentals into principals to help with tax.

I am wondering what is the legal implications of this arrangement?

I just want to know where you think you are going to buy a $375k house that will cash flow, assuming you're using anything close to a standard financing arrangement  (~20% down).