If the owner stopped paying, wouldn't the whole country need to go down the gurgler before your non-performing 2nd note would be worth nothing? 

Although it's nice from a non-financing perspective, it is definitely something to keep that in mind.

They required a non-refundable $10,000 upfront deposit as a "loan commitment fee".

According to public record it is not bank owned

The primary policy of the LTB is not to evict and aside from non payment of rent adjudicators generally will not evict.  

Therefore, I gave this a lot of thought from my experience of non paying tenants and ive decided to move here for couple years, make 500k and move back to CT. 

We will be self-financed, developing property that is zoned "by-right" for the intended use, using public water/individual septic tanks, constructing DOT spec roadways, installing concrete sidewalks and offering high-speed cable TV and internet service.

The info is as followsProperty 1: Rents for $1850 a month on a 9 year lease (7.5 years left) to a Arizona specific non-profit.

Be prepared for extra expenses on the interior part of the home because of the non conforming shape of the building that creates alot of customization for trim, drywall corners, cabinets, built in's, etc. 

I'm curious as to what issues I should be considering when dealing with these properties or with certain banks or even non bank owned properties?