This takes some coordination on your part as transactional funders will require your end-buyers funds and executed closing documents be in possession of the closing attorney before funding the purchase, but it is not really different than the coordination required for wholesale deals. 

Once sold, are there any arguments I can make that this property should have gone out of my possession in '09?

Some assets are not marketable ,they may have an intrinsic value to you but since it can not be converted to cash, it may have little or no value and is more of a possession than an asset.

If you choose the right one, they’ll know lenders and can add credibility you don’t yet possess.

The possessions and security deposit refund are part of the estate. 

Derl found many problems, so we were able to get them repaired before taking possession.  

I got Possession in early July, I did a fair bit of the renovations myself, but did hire out aspects (like electrical and drywall).

He would have control of the permit on all levels we would just want the information on it so I still don't see how that could be a fear if it is in his name and in his possession.

I have taken pictures of all the units when I took possession, but there are some issues that have obviously been there a while, so based on the lack of proof, I would probably eat those costs anyway. 

When you get to 3 bdrm you are entering more family territory and I do see them in general being more possessive about the land, especially with you kids.