In fact besides the in-state/out-of-state distinction that you mention, there is also another distinction for foreign lenders/investors (which some of the people I'm talking to are) in which case some of the SEC oversight doesn't apply at all because they are non residents.

If you have or will receive equity in or title to the property, the rent is not deductible.Interest - Business interest expense is an amount charged for the use of money you borrowed for business activities.Taxes - You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses.Insurance - Generally, you can deduct the ordinary and necessary cost of insurance as a business expense, if it is for your trade, business, or profession.Read More at: http://www.irs.gov/pub/irs-pdf/p925.pdf And http://www.irs.gov/Businesses/Small-Businesses-&-S...

If not dividing in 3, then at least in 2.Current numbers:- Expected purchase price: $385K- Downpayment: 10%- 100% Rehab cost financing- Contractor bid: between 60K to 100K (30K + between 30K to 70K to fix the failed septic)- Surveyors cost: 30KThere are 2 main issues:- Deal structure: The property would fall under his family LLC, so we need to adjust the right legal structuring and contracting framework for me to enter as a foreign equity investor.- Failed septic: At this time, it appears that the contractor is not seasoned of septic issues, and we do not quite have a good idea of the failure details.Therefore, in addition to the whole subdivision ballgame, both issues above are fairly new to our ventures, so this will be interesting.

There are foreign national programs available.

I know one issue is every thing these days is so last minute and the East coast closings attorneys are making changes to the HUDs during the closings  its quite foreign to how we do things. 

Now my parents are passed away, and I've managed to sell a piece of the land they left as inheritance and I have US$35,000 in brazilian currency.

Several acres worth now mine in front of the foothills of the Rocky Mountains because a foreigner didn't want to pay anymore taxes.

Two currencies taken at the supermarket: old dollar and new dollar?

Actually I think I've been to more foreign countries than states here in the US.

Buying property in a foreign country is a risky investment if you do not due the proper research.