Books like Fooled by Randomness make it apparent that you see a lot of sucessful people on social media, books, etc; not the graveyard full of dead bodies/failed investors. 

Especially by the third contract it would be natural for you to react in either of the above ways. 

I had to deal with a lot more issues than I've ever had in non-S8 rentals like extensive property damage and also bed bugs, roaches, drain lines completely clogged up by grease (I learned what sewer worms are, look it up), spray paint art on walls and food on ceilings, noise complaints, police at the property, removing dead bodies, etc.  4.

So I understand the owner loses right to possession once some body buys the tax certificate?

First of all, their certification program is NOT accredited by any legal body so it is basically worthless other than it may look good on your wall.

It sounds like you are looking for an employee as defined by most taxing bodies.

I tried calling around the respective govt bodies, but wasn’t able to get clarity on whether out-of-state investors can setup such a facility.

You'll need to provide Entity Docs for each LLC that is a part of the transaction so that the underwriters can review them all the way down to the natural individuals/warm bodies. 

So you can only react to what is in front of you at the current time.  

You need to contact the governing body that has jurisdiction over the zoning laws for either the incorporated or unincorporated of the county or city for the plot you are interested in building on.