So, in this case, the Grandma was put as guardian of the property until the child was of age to take ownership of the property as the executor.Then I looked at probates for "Steward of the Property" (I think that's what it was called).

USC Title 12 Chapter 13, exemptions to the due-on-sale, transfer of ownership to a spouse or children of a borrower.

If not, take ownership and sell to local investor.How does a tax lien compare to that?

I've decided to capture the benefits of real estate ownership without the negative cash flow associated with our area.

This seemed to work fine for cross border ownership and taxation.As mentioned, a good attorney & CPA that is fluent in cross border transactions is a must.$25k is on the lower side of things to get started but I'm sure you can leverage that to buy 2-3 properties.I've found that it works better to buy with cash [or OPM] and then rehab.  

I intend on being a hybrid investor, as I do have a private lender who is interested in putting in $100,000 for 20% of the profits.Now my question is, which corporation of ownership would be most ideal for multifamily and small apartment properties?

You might also consider purchasing a franchise store.Or you may use creative financing to work a no money down payment deal for a business in exchange for a share of profits/ ownership in the future after you develop it.But do your due diligence as always 

Should I be sending letter to the current tenants about the change of ownership, what do you do to set the tone for your tenants such as sending out rules and guide lines.

The best way to jump into buy and hold ownership is to target an owner occupied multi family home with an FHA loan - which means only 3.5% down payment.

Not having any luck on the 2nd mortgage note.If I purchase the 1st, can I foreclose the property and take ownership?