Still has lots of belongings (including a boat) in a large shed on the property... could imply intention to move back, or a desire to not have to deal with it and possible interest in having help getting rid of all this stuff3.

So, in theory one could get a 2:1 leverage, earning the rewards on $2 for every $1 capital spent out of pocket.     

This brings me to now, I've taken this approach and have used my own money in lending, but am also bringing in friends and family to take part in these transactions so they can earn way better returns than with CD's.

Most often it's in free & clear properties but, in a high enough desire area like these, and with low enough mortgage balance, yup, some can 100% get enough on the sale to have it all make sense because as @Jay Hinrichs has pointed out that in these areas the majority value is in the land not the structures on the land. 

Research your local market, budget realistically, and focus on properties with good potential in desirable areas.

For $1,500 renters in Cincy would expend very nice place on a quiet street and desirable area.  

Yes the plan is to reposition the asset to earn the $40K.

The workshop shows how SDIRA owners can earn double-digit returns by owning real estate as a bank. 

Be sure that you are purchasing in a desirable location though.

But if I put the money into buying a house, with the leverage of a mortgage loan, I can still earn about 11% annually on my investment on the appreciation, even though there is no cash received for the rent.