I would like to know more about the mechanics of this deal.  

Make sure the are close, a townhouse and have comparable features.Even though the previous owner may have purchased the home for $35k he may have put some money into mechanicals or plumbing that you might now see.

The law is untested and (in my unprofessional opinion) there is not a clear, constitutionally legal (louisiana constitution) mechanism by which you can take ownership of the property.

I am telling you this not because I am REMOTELY afraid of out of the box thinking, it is because I know the mechanics of making offers on foreclosures, because I work for the banks who I present these offers too.  

Thankfully the previous property manager was very strict about rent being submitted on time and we have had no issues thus far.We have made this a clear point of emphasis with our old tenants and now in our new leases.

I had the same issue and i resolve by placing the mechanical water meter to the water line going to the guest house without dealing with city and avoid all the cost. i am reading meter every 2 month and also sending  picture of the meter to my tenant. 

That beings said, since so few understand the mechanics of vacation rentals in this area specifically, those that do are throwing off great numbers and buying property after property.There is a science to it but it's not rocket :)  My success comes from helping others succeed so if you have questions feel free to msg. 

You would typically do rough electric, rough plumbing and rough mechanical (HVAC) after 4 in Scott's interior list.

Emphasis on purchasing AS IS .

There is a certain segment of people that are tired of cheap rehabs, short sales, etc that are focused on the combination of quality combined with technology and energy efficiency.I'm actively hunting some infill redevelopment sites to build exactly what your talking about with the emphasis being on 500-700k homes with the goal being to hit a zero energy status.