Does anyone know what other documents I should have to minimize my risks as a private lender?  

I have seen multi-family properties listed as single family houses which is indication that most likely the conversion was done with out permits.

The CUP has a much more likely chance of approval (I spoke to the County Planners and they have indicated that those types of applications are not very controversial and have been generally approved).Is there anything I need to know about REO properties in this situation that may hinder my deal?

Hi Nathan,Be patient and start with a smaller dollar figure as it will minimize your risk.You can always build from there.Upstate NY is one of the toughest rental markets across the US in my opinion.Thanks and have a great day.

If you can easily find another tenant, let them out with minimal pain.  

Note that you can perform roth conversations over time (year over year), minimizing your taxable liabilities where possible.

Property taxes are not necessarily a good indicator of payment history on a lien.

Nothing would have been fried or damaged.So, the fact something was damaged indicates there was an existing problem somewhere. 

In my research into REI, wholesaling 'RE seems to be the best way to begin a new career with minimal cost.

In fact they haven't even set a date of when that would happen but the futures market for interest rates indicate a rate hike could come sometime in middle 2015.