Depending on loan terms you may still have a claim against the borrower, but you will no longer have a security interest in the property. 

What should happen first, secure financing or put an offer on the house? 

You just haven't gone to Kinko's to make it pretty and you might not have done graphs, which I do because I like to see stuff visually.You will also need to buy it with an assement, and if the bank asks it (which it almost always will) make repairs and etcetera to secure their investment.They also might make you get some types of insurance, hold stuff in escrow.

I'm pretty sure I can't put itching powder or anything like that haha.How much does it cost to hire a security company to do one daily and one nightly patrol of the alley?

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Assuming of course that anything needs to be done at all, which I'm far from convinced of - people can get fired from their jobs at any point, but social security disability isn't going anywhere, so it's not like landlords have any reason to be skeptical of rock solid non-employment sources of income such as Uncle Sam.

I don't see your parcel pledged as security for any loan after seller acquired in 1981.

don't know but Oregon is quite strict in fact you need a developers license to rehab and resell homes .. even if your only doing one a year.. you can only work on homes you owner occ if its to be resold to the public you need a GC license for a developers license..

@Mike Dymski You are right, this conversation is far better than talking about late fees and where to keep security deposits. 

If you had no partner and not enough money to secure financing this idea seems worth the risk.