They have responsibilities (e.g. wife/husband, kids, mortgage payments) and taking that dive into action represents putting their security at risk.

Is there a way to legally require a larger security deposit?

I would do 2nd mortgage with the interest as high as allowed by your state to secure your investment and the balance of the promised return should be in your JV agreement in the LLC.

You could then use that $95k to secure financing for another $300k in property. 

if anybody knows people who are involved with buying and selling non performing and performing notes please list there names by replying to my post, thank yousome other strategies that i've came up with to find notes for sale are researching institutional buyers and sellers for mortgages back securities 

If I could secure a good rate with the HEL it may be the best option, but then don't HEL's typically require short loan periods (5-15 years)?

That being said you are welcome to use my public portal to look into the MLS for your area (NY agents have access to the whole state MLS).

My Ira buys the property, the Ira secures a non recourse loan and the tenants rent pays the PITI and provides some cash flow to my IRA.

Should I try to secure a FHA first time homeowner's loan so I can put a smaller payment down?

If there's no relative, then probate will likely be handled by public administrator and they'd be in charge of auctioning off the house.