You can always negotiate from there.The fees you describe are simply the cost of operating in the real estate business.

@Glenda Barden  First of all what you describe is not even close to "gross negligence" in legal terms.

@Kyle Schlosser  None of mine are in C or D none of the towns i am in even have D areas, the key is small town, not major metro, i did a simple search in Louisville where you are, and there looks to be plenty of opportunities like i describe just on Realtor.com, I have to work a little harder than the MLS to find my deals, rents appear high as well.

What you described with the zoning as E-TU-C allows for a duplex.

I have been trying to figure out the best way for asset protection and limiting taxes if I were to invest in notes, but most of the content I find is just describing how to invest and nothing to say about taxes.

If # 2 describes your situation, did you call the buildings department to arrange an inspection?

In agreement with the above comment, there are other lenders who do as Ben described.  

If its exactly how you describe it sounds like a great deal for you.  

As for getting your real estate license, it's not necessary for what I've described here (I don't have one, either).  

Soper; the area that you're describing is a low-income neighborhood.