The only concern we run into is occasional foundation issues near the river, towards the south east side of town.

Hmmmmmmmm but no concern on count down to get far away from this unlovely, and un- cared for place.

A purchase agreement is a waste of time and energy and complicates the issue for Harry Homeowner.This is not a beginner strategy as there are federal laws concerning approaching debtors who have been given a notice of foreclosure.

I think this is what I was inadvertently concerned about (super newbie).

Under this idea, you'd need to see if the Health dept has any restrictions for your septic system (which i assume you have) and if the power company would meter the 2nd unit separately. 

Years ago, my elderly neighbor expressed his concern to me about our trees leaning towards his home and that he wasn't trying to be a pain. 

(I have a special needs trust for my son so have dealt with the complexities.)My bigger concern would not be your liability exposure but doing something that could potentially endanger the support benefits your brother is entitled to.

I think the market has shifted in most areas, and "too much cash flow" isn't really a concern anywhere with interest rates where they are, whether in Alabama or California. 

I also understand the concern about borrowing 100% of transaction costs.

Take for example the lack of productivity where construction projects often experience time and cost overruns, rework or quality concerns.