First, our direct involvement in the local real estate community helps us identify well-located properties that we think we can improve through better management, new capital or better marketing.

Only has a PO box and a friend at a local business who will take messages(and also gives her legal advice).I have given 30 days notice, but I'd bet money she wants to take this to court ect.I want to try to do a cash for keys but I am not hopeful (I tried once already and she ignored it).Help, is there nothing I can do but brace for the pain? 

Without walking it, and based in large part on the price, I would bet pretty good money that there is major foundation issues. 

I agree with @Jordan Moorhead, you will need a minimum 20% down unless there is enough upside where you can get a HML involved for a short period of time. 

I wouldn't think just turning it into a rental would be the best bet, but it's an option.

As a result, I have many friends/ family/ business contacts that would be willing, and often ask, to get involved.  

Both my wife and I are wanting to get involved with Real estate, I have been researching areas, listening to podcasts, and reading books to expand my knowledge.

It's safe to bet on 20% of the loan, plus 25% of the rehab costs, plus money for holding the property.

I'm really curious how others relying on this strategy hedge their bets to decrease their exposure.

Your best bet would be to learn through Youtube.