Reason being owner is 80 years old and just kind of gave up on it.

Even if the tenant tells you they will be in to pay on the 3rd, kindly respond that you appreciate them giving you notice but you will still file the 3-day Notice on the 2nd.

first you have to decide what you want to do in the note business.. what most of the responses are talking about is buying bad debt.. and 2nds at that which this is the most risky and the most work..if your looking for work and risk and job then that kind of note investing is for you.If your looking for Passive income with no work and Limited risk then you simply need to align with a great HML who takes on private clients or those that understand where performing notes are generated.. we have done over 1700 performing notes for clients that last 5 years and really don't advertise at all. simply because once you get conservative investors in your program it just feeds itself.. deal flow is the key right now.. most have a hard time finding quality. finding defaulted seconds is easy.. and the most risky. 

I have enough to buy the second all cash (just sitting in a 1.6% ally bank account at the moment) but i'm wondering if I should leverage my money and try and get a conventional loan or possible some kind of HELOC on the value of the first rental.

What kind of taxes and or exemptions will apply in my situation?!

The banks I do business with don’t do construction loans to private people, and I am not sure I have the income to get the kind of loan that I might need.

First, talk to your loan officer and see what kind of loan is going to work best for your situation. 

It all depends on what kind of property you are looking for. 

If it was left up to me, I wouldn't know who to call.I worked for a small upstart insurance company during my college years, and this company writes policies for one of a kind coverage if none is commercially available.

Right now we're more emotional about everything...it's a very personal kind of thing, in a way, but we know to really make this work we need to start approaching it as a business.