Not to say it might not work out OK anyway, but I personally don't see the reward here justifying the risk.I think the "right" answer here is that the closing would have to be delayed until the property can truly be vacant.

You may still end up with the deal even if the first time it doesn't work out.

It might work out in the short-run, but over the long term, you'll burn yourself.Other than that, make sure your brother really knows what's what with the property management aspects.

The distressed properties will usually be more from certain loan structures that do not allow hardly any workouts, weak net worth operators, sub-standard class of property within the asset class, etc.Most of the NNN my clients are buying right now are investment grade ( ESSENTIAL BUSINESSES).

It is unfortunate but this happens a lot where you really like someone but it just doesn't work out on paper. 

Hot water heater worked, roof didn't leak, and I loved having a garage to work out of and store my tools.

Will banks do workouts and workarounds or do they foreclose? 

If the higher risk strategy doesn't work out you have a fallback. 2) Again, analysze them as traditional rentals.

I’m trying to work out an offer on a house that I estimate has an ARV of 730k.

Secondly, if the numbers do not work out for a wholesale deal then I would do a "Subject to" deal.