If you are struggling with the funds to come up with the repairs, consider getting a HELOC to fund these items. 

I'm wanting to get started in REI but my funding is little to non existent.

From the tax standpoint, unless you signed a contract entitling them to partial ownership or income rights on the property, you essentially gave them a gift when giving them the funds from the sale.

The purchase price is very low, because it is currently an emty industrial building zoned single family, so it cannot be used as designed.

I plan to start with my own fund in CRE before I bring other people's fund.

You need to have lots of money at least till you get 5-10 rentals then you can collect enough from rent to refill the coffers to fund your next purchase at the next tax sale etc.   

Buying when you plan to live in a property for only the next few years can be an EXCELLENT way to get competitive owner-occupant financing and low down payments on something that will be converted later into a rental.

You must understand the reluctance of brokers to lease these units - the total rent is low and the prospect tenants are a tough sell.

At each property, whether a vacant lot or an industrial warehouse, he told the borrower that he should convert the property to medical offices, and that my fund would be willing to finance the conversion.  

Good Day,I'm looking for more information about how to sell home to hedge funds or private REITs, I'm asking since I want to see if this could be a potential exit strategy for houses, I have hear this in some small real estate meet up in the area.