Under what circumstances does it crash?

There are a thousand ways to profit in real estate and you have to choose what works best for you and your circumstances. 

What is the % used to calculate the unforeseen expenses ?

Her age or ethnicity had nothing to do with the legal problems or why this happened in the first place circumstances. 

That's what the probate process is for.Wait until the court accepts that will as the last and appoints a PR... then contract with the appointed PR in that capacity.I would not attempt to take title subject to a mortgage in default under these circumstances.

There is a safe harbor from the IRS in Rev Proc 2008-16 at 2 years under a set of circumstances. 

Nothing wrong with money up front...........just make sure you understand all the circumstances and what the money is covering up.

And most of all, don’t advertise your wallet to the internet under any circumstances.

Diversification is a great hedge, but all of those would also be effected by any unforeseen event.

I'm just worried about allowing him to accumulate equity because it feels like some unforeseen circumstances could require material amounts of labor that would substantially (and unpredictably) change my return on investment if I'm losing equity the more work he puts in.