My friend and I have been establishing our list of contractors and private money lenders, reading every bigger pockets book, listening to podcasts, talking to other investors in our area and now finally after several months of preparation we are ready to sit down with some professionals to put our plan into place.  

You are essentially gambling with an ARM and that is not something you want to do.  

You should treat the leasing agreement just like you would if you were dealing with an unrelated party.The rental amount you establish must be fair.

I am just looking for general feedback on out of state investing and to hear your experiences with establishing companies out of state.https://www.dos.pa.gov/BusinessCharities/Business/Resources/Pages/General-Rule-Exclusions.aspx?

Just out of curiosity, if she had put so much into the building, and she had an established successful business there, why didn't she just buy the building from the heir?

And if you have multiples, do you keep them together or separate (establish a new LLC for each property)?

Otherwise, unless you know the area well, I'd say it's more of a gamble.

Quite frankly I know of no one that will lend money to an unemployed investor with no experience and no capital, let alone lend 100% of purchase price.Your chances of your #1, finding a below value property with a motivated seller and being able to get it under contract are slim to none.Your chances of #2 and #3 are none.You need to establish experience, capital, and income before you invest.

The other thing is interest 10%+.Scotiabank-Peru warns, “there is another issue to consider: the increase in mortgage banking delinquency; which between late 2013 and August 2014 ... increased 55 percent.”Peru faces threat of housing bubbleBy Cesar Uco 13 October 2014Peru’s National Institute of Statistics and Information (INEI in Spanish) released statistics last month establishing that property prices in the country have risen faster than anywhere else in the world, ballooning by 121 percent between 2008 and 2012.

http://www.frankseldenlaw.com/SD-IRA.htmlI set mine up through Guidantfinancial and they had a very impressive educational component of their account establishment process.