We would be funding the construction project but I have a lot of questions about legal ownership of the property as well as how a loan for a portion of the project might work.

Some contracts state that the buyer isn't responsible for collecting past due monies that predate their ownership, but that they must turn them over to the seller if such funds do get collected. 

@Gino Barbaro is dead on when he pointed out above, this is a different era and the CAP rates have remained compressed longer than most MF investors have expected due to three factors 1)Downsizing Baby Boomers, 2) Gen X/Millennnials delaying the purchase of a house, and the rapid growth of migrant population coming from countries where home ownership is not even a possibility for most. 

there are more passive ways to invest in real estate besides outright ownership + managementwhat led you to Ohio?

In other words, how far down do I have ownership of?

If you have >20% ownership in both entities, you would be considered a related party under the law. 

It's best to have your finances in order before you take on home ownership. 

I didn't put more than a couple hundred dollars into needed repairs for the first year of ownership.

They are willing to redirect their payments to me, since they know I am regaining ownership of the property.  

Well that expired today and my agent started to submit the offer and she emailed me about taking a "Framework Home Ownership Course".