If you are risk adverse real estate, (especially out of state) is not for you.As for horror stories you'll end up involved in those no matter where you invest.

Congrats overcoming a lot and thanks for sharing!

You have to understand how risk-prone or risk adverse you are.

I think the latter requirement could be overcome with a letter from the IRS confirming a $0 tax liability for the years requested; however, I haven't seen this scenario unfold as most people never take the time to fully understand the contracts they (don't) enter into.What are some situations you as an investor have faced that would normally require a tax return that you were able to work around and how so?

What are some ways to over come this?

Depending on the results of that, you could look into adverse possession, but the odds are stacked against you there.

Experience can be over come with liquidity and 3rd party management or bring in an experienced operator as a member. 

@Brant Garner typically I am pretty risk adverse my main concern is that I will be able to finance it conventionaly down the road and sell it to another investor.

I can take payment from (almost) any party who isn't adverse to the client, with the understanding that the client is ultimately responsible. 

If you are risk adverse real estate, (especially out of state) is not for you.