So here's the deal:There is a property I'm looking at that is in an older well established neighborhood. 

The best place to start is to establish a criteria and class of property that works for your objectives.

I was told by a law firm that if I want to operate (hold real estate investment property in Georgia) I would have to establish a Georgia LLC for that.

In a nice way, let the tenant know his credit history with you can help him re-establish credit for a mortgage later on.

Unfortunately, until you establish business credit there is no way to operator a real estate investment business without taking a hit to your personal credit score.  

There are many hard money lenders that are less formal than the more established companies and can provide you at least a tentative yes with some basic information. 

To obtain financial independents you need to get established in a conventional W2 and work on getting your credit repaired.If you are waiting to inherit and have no intention of working for a living you may have to couch surf and panhandle.The only way to truly get established is through hard work. 

I do know that LLCs can be established in other states. 

Make sure the nephew has another official address and doesn't do anything that would establish him as a tenant.I would just write your terms in an addendum.

I.E. establishing buying parameters, have several established contractor relationships, financing, etc.