Looking at the street views of the areas, they look "OK" but the roads are in bad condition, which is one of my go-to's in determining the quality of a neighborhood. 

I don't know the specifics of the note you were looking at but often BK notes and notes sold to smaller investors / funds don't report.It is also common to see notes for sale where it's already been foreclosed by the first mortgage (so they have nothing to sell).A few months ago I saw one where when you looked at Google Street view, the building had been half destroyed by a fire, yet the "value" was way high.

Whenever any rent has become due and payable, and payment has been demanded by the landlord or the landlord's agent from the lessee or person occupying the premises, and payment thereof has not been made, the landlord or agent may file a statement, verified by affidavit, with any associate circuit judge in the county in which the property is situated, setting forth the terms on which such property was rented, and the amount of rent actually due to such landlord; that the rent has been demanded from the tenant, lessee or person occupying the premises, and that payment has not been made, and substantially describing the property rented or leased."

Buyers are generally able to acquire these properties at a higher CAP Rate than a comparable Class A property because these properties are viewed as riskier than Class A.

(I type the street into Redfin/others and it keeps giving me comps within certain close neighborhoods).A house I'm going to look at tomorrow is in a little niche area on the water/with a view along with 80 other houses of the same ranch style.

@Kurt Pourbaix I agree with other responders, as described this sounds more like a joint venture than a lender/borrower situation.However, talk to your accountant, there may be ways to structure your arrangement so part of it is lending (with interest income & principal repayment) and part of it is investing...if that would be helpful to you and your tax situation.

I currently live in Mountain View CA as an engineering contractor for an aerospace/defense company.

Might want to google concrete counter tops and view what I see. 

Thanks so much...I am viewing the resources available on here, and I am eager to get started with investing!

Property Services of Ocean View.