After looking into it more, I'm concerned about potential tax implications and legal issues, such as piercing the corporate veil.

I may hire an attorney, but I may have finally found a law pertaining to this issue.

The issue though will be a lender will not give you 100% acquisition if thats what you are trying to do by getting it at a discount. 

I found the issue yesterday with the help of a plumber.

I am licensed in FL by division of hotels & restaurants and also a licensed RE broker so me holding funds in escrow is not an issue. 

@Shaheen Ahmed maybe look at this in a different way - where are you going to invest where property taxes are NOT an issue?

Quote from @Shane Haas: Looking at purchasing a foreclosure cash (with help from parents), and then financing the home shortly after renovations are made. 3 questions: Are their issues with them giving me funds to assist with purchase?  

And, if they had issues in the far past, it can still be a red flag too.

That's not the issue.

These include accidents (I recently had 2 units destroyed by fire), natural disasters (I have had two units each hit by 2 hurricanes), property management turn over (they sell or stop being as good, I have experienced both), or turn over of team (I am turning over at handyman and I suspect plumber), or just wear n tear of property (slab leak in poor location, sewer pipes rotted out (one unit this month), roof, foundation issue, etc.).