I am new to investing and am trying to be involved in any real estate dealings I can, to learn and network. 

Working with a PM that specializes in this area, we have a strategy that involves complete reno of units, combo of section 8/market tenants, getting rents to market and offering a quality living space that attracts better tenants. 

This all sounds like a lot but I'm waking up each day excited about the days ahead...you guys are an unbelievable gem of a resource and I look forward to getting involved and helping however I am able...Best,DJ Tosh

Thanks for the reply @Aaron Osgood.She isn't picking finishes although I have been running some items by her for her opinion since she's involved in that market. 

If the investor is passive and not involved in the day to day, then you are still selling securities.

They seem very friendly.The potential lease involves a recreational marijuana dispensary; which is legal in our state and okayed by the bank.

On the other hand the further out you go, the less likely is your property to appreciate and the less likely is your rent to rise and harder to rent.I personally like to invest close to where i live and where i work because i know those areas pretty well and i don't want to be driving 2 hours to check on the properties.It also depends how much you want to be involved.

As @Braden Smith said, speak to an attorney (specifically, a Real Estate attorney who is not involved in the transaction in any way).

I assume they tell me to get a contractor to add a meter (looks easy) and run independent sewer outflows from each house (might involve an act of Congress)?

If the home has a loan on it, there is a creditor involved, and as I stated, no one is doing anything with the home that has a loan on it with a creditor until the trustee says so.