In the same senario, a seller finance deal, should/can I have someone (I'm not sure who actually does this, please let me know) come and inspect the property before I agree to purchase?

I'm looking to invest in solid countries (politically wise) that allow foreign investments, which makes me think I should look at the different markets in the USA.

It is considered an unsecured loan unless you and your borrower agree that he/she will put something as collateral for the loan re-payment. 

The biggest piece of advice I have is to make sure that everything you and your brother agree to is in writing and 100% understood by both of you. 

Perhaps could I pay additional $ to HUD to agree to turn on the water...or is there another (legal) way to go about it?

Yes they are old and many need substantial work, but you have a major advantage over people living in more expensive areas of the country, not to mention a great supply of small multifamily homes.

I agree.

Agree.  

@Luis Roel yes i do have an LLC and I agree, hard money, even if I took a larger amount, to me is something that doesn't seem appealing due to the high rates

Some were better than others, but they all had elements of it that I didn't agree with, or lacked that I thought was important.