Question 2: What would be the best way to get cash to my family member and let the other beneficiaries take full ownership to live in the home. e.g. have the other beneficiaries get a conventional loan or would it be a cash out refi on their part to "pay off" my family member or any other best scenario for getting cash outAny advice is appreciated!

The boot camp is doing you no good service forcing you to purchase something you do not understand the liability and regulation around prior to ownership.  

If this is an REO, you should get clear title upon transfer of ownership. 

You could get your name added to Title so that both of you show ownership and then get a loan against it.

The ability to transfer rights of use and ownership allow business transactions to be facilitated.

But in the others the general rule of thumb is if you are being paid to manage a property in which you have no ownership interest you must have a real estate license.

@Orlando Paz  In most states a Mobile Home is considered a Motor Vehicle and has a title that is identical to a Vehicle so they are easy to transfer ownership, but counties will tax the MH annually.  

Judging from the age of appliances and finishes, it has almost certainly been in use as a triplex since then, no telling about vacancy though.We've decided to move forward with the purchase and are requesting a letter from the seller stating that it was a triplex when he purchased it in 2006 and has been in continuous use as one since then, as well as a statement that it has not been vacant for more than 12 months during his ownership (I think the city has some form letter for this that we'll just use).

I know several buyers that don't really care to have an existing tenant remain in the property after they take ownership...

Is there a way you could do some type of joint venture agreement where he keep 10% in and then he gets a % of the profits from the building and when he's paid in full his ownership percentage disappears?