It will be extremely unlikely that you find a HML to give you 100% funding on your first deal.They will all require you to have a down payment and some skin in the game.You will also need funds for rehab because they typically reimburse you afterwards.You'll either need to save up or get private money (friends, family, etc) for the down payment.Otherwise you can always explore creative financing options like seller financed deals, etc.

I'd love to meet up with people in the area to network and explore mutual interests. 

Hows it going BP,While driving through an area of town where I would like to invest (Diving for $$) I came across a ton of properties in really REALLY nice neighborhoods that seemed to be abandon.

Am I looking for trouble in considering a run-down property in a bad part of town?

This is one of the most expensive parts of town so I was thinking this could potentially be a very profitable flip even though it is not currently listed for sale.

I know the margin might not be great, but we're willing to play the long game on this part of town. 

I know a couple guys in my home town that served 5+ years in a federal prison for this.If you're moving ownership into a land trust that you also control and have no intention of defaulting or selling and avoiding the payoff, it could for sure be argued as positive fraud, but the intent would more likely be for something like asset protection or some kind of investment arbitrage - which could still be fraud.  

I am in a similar situation as you where I do want to add value and also have a place for my out of town family/friends to stay when the visit.

I believe the property is titled to a living trust.I don't think the outright gift is an option but definitely worth exploring (sibling fairness dynamics).

I'd rather turn it into a nice patio area/study area (since it's in a college town).