The mortgage remains against the property unless the lender forecloses, somebody pays it off, or they forgive/release the debt.

It should remain low for a couple of years since the economy hasn't recovered enough yet.

But the question remains as to who assesses the house as "habitable" and legal to rent?

What's the payment and how many payments remain on the contract?

Once they are there, you can get rid of the tenant, but the bugs will remain.

My expenses have largely remained unchanged.

The seller would be carrying back the remaining $112K in second position, behind the first loan.Not likely the seller will leave the $288K in place, not likely that he wants to be in 2nd position for the $112K and even more unlikely that he'll let you take over his note AND lend you money with no down payment.

I have a family member who is trying to avoid going into foreclosure and has agreed to let me buy the property for the remaining balance, which is about 23K.

(my down would be the collateral for the traditional financing, NOT the value of the SDIRA portion)2) Could my SDIRA be a 20% owner, and use 'owner financing' for the remaining 80% with what ever terms we agreed to (25% down on that portion)?

However, if you want upside and wish to complete a value generation activity then fix and flip should remain in your investment wheelhouse.