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.

@Jason Abbott if it has a mortgage on it you had best OK it first with your mortgage holder or they could invoke the due on sale clause calling your entire mortgage due in full now.

The wealthy have created rules through work visa programs.

I would end up paying a lot in taxes since I couldn't deduct as much as the LLC.One possibility would be starting a new LLC of which you have three owners or stock holders each owning 33%.

Make sure you understand the process for that specific area, here there is no priority amongst multiple lien/certificate holders.

If it's your brother, but you are going to be the mortgage holder, then I think you'll run into problems with the lender (although they might allow some portion of the downpayment to be a "gift"- I'm not sure what the regs are on that now).So you guys should do a bunch more research before you jump into anything.