The IRS rulers prohibit any direct or indirect benefits to you.

Yes @Jay HinrichsI do not coach "turn key" rental purchases, that is not a skill.I coach -looking for seller problems and brainstorming creative solutions, -getting private loans and jv partners, -learning creative financing (ie sub2, installment sales, lease options, lease purchase, legal wholesaling, rehab calculation, subordination of notes, jvs with business people, jvs with home sellers on minor rehabs, etc), -marketing for sellers, wholesale cash buyers, owner financing buyers, tenant buyers, jv credit partners, and private lenders, -learning private lending and syndication, learning prohibited transactions, disqualified persons, custodians, Reg D, etc.

I have been trying to start one in DC proper,  however it is finding a meeting space which is prohibitive.  

Add a clause to your rental agreement that prohibits tenants from operating businesses out of the home.

The PMI on the FHA seemed prohibitively expensive. it was basically a non-starter for us.

Since my brother wont really be looking to make a draw, as the profits will be reinvested except for a minimal distribution to me as it would be my full time job.Would co-orporate tax rates not be prohibitive until such a time that revenue is significant?

It may be prohibited.

Considering that I am an investor I would not want to offer 90% of market value for any property, but it appears that this is a requirement for property in probate.I understand that CA has the IAEA in place that gives the executor liberty to operate autonomously from the court as long as the will does not expressly prohibit him or her from doing so. 

When looking into it further the house turned out to have been previously zoned as occupancy prohibited, which I hadn't run into before. 

Don't forget security, late fees,  early termination fee, and prohibited provisions (no smoking, no pets, no painting, etc...), also lead disclosure.