I have concerns when a potential wholesaler indicates they have minimal capital.  

I see some pretty bad reviews and a little concerned whether to purchase/finance with them or seek my own financing 

My biggest concern here is the trunk duct in the attic being rotted out but will asses during inspection time.

However, my underlying concern has always been the horror stories of how these rental rockstars 'lost everything' during the recent crash. 

I would be more concerned about clean title in this scenario than seeking to utilize a self-directed IRA... and am surprised that this issue was not first addressed by other respondents... for example, a defaulted mortgage based on "assignments" created by MERS "Vice Presidents" litter land records in every courthouse in America. 

I'm concerned about possible future conflicting interests, like we want to sell and she doesn't or vice-versa. 

I'm new to this forum - can I post my email address for you to send?

@Michael Dang - I'm concerned I'm speculating too much.

She believes the house may be in foreclosure but does not know if the house has been foreclosed on (she was not getting her mail forwarded to new address).

They are a little harder to get into but has less competition and itt's not retail buyers.You might have to form a partnership to do that but as long as you keep control it can be a better thing and you can have several units at the same address.