If there is work needed, then you make arrangements for the lockbox so contractors/handymen can access the place to get it rent ready. 

He is also a mortgage broker so he can also arrange financing at the same time. 

Essentially identical to a sale with owner financing but the deed stays with the seller.Yes, you can 1031 into such an arrangement as long as the contract has been written so that in the terms all of the burdens and benefits of ownership have transferred to you. 

In doing so they may want to be nice and fair, but they may be unnecessarily complicating the arrangement and creating future problems.A bunch of individuals holding a gifted or inherited property as straight TIC is often fraught with problems. 

Just clearly describe your sleeping arrangements so there are no surprises. 

@Brian Winters, Semi Random thoughts and some answers for you.The county will do formal arrangement to pay back taxes.

I’m all about finding mutually beneficial arrangements but these tenant laws sound very lopsided so I’m curious how successful investors are going about it.

After the expiration date of the loan term, I tried contacting the investor to arrange for the return of my funds, plus interest but did not get a reply.  

If you bought it directly from the owner then ask them what is the arrangement with the neighbor.For starters.

I would hope people are on vacation and in the "chill out" mindset and not going to get too bent out of shape about seating arrangements for supper.