I also agree with @Spencer Gray, likely a lack of education either about investing in CRE all together or specifically about the particular offer.

Write up an agreement stating that for that particular package of notes, you'll do the work to foreclose or bring into performance in return XX% of the proceeds.  

Don't think that one particular out of state market will shoot you to success or abject failure.

The listing agent/owner on this particular property has been licensed 10 years longer than I've been alive and 43 years longer than I've been licensed.

Where as a nicely remodeled 2b/2b for $200k close to the strip should easily carry itself and more.What in particular are you looking for / interested in? 

Another challenge area is finding quality tenants, in particular during the winter months.

@Keith Hackett many foundation companies, particularly in areas where foundations are a large issue (looking at you Texas) will offer a lifetime warranty on their work so I'd look for companies that have been around at least a while to make the most of that. 

This was particularly helpful in the laundry room which did not need to have the air regulated that much.

Without knowing what aspect of real estate you want to be involved in it's difficult to give you ideas for specific questions that might relate to your particular needs such as "What type of entity structure should I use for rentals and flips?"

However, I am not attached to any region in particular, as long as it is a good deal in an easy to rent area I would be interested.