H.U.D homes that are open to investors means that no person wanted to buy it to live in .So after 30 days give or take the investor can buy it .So the house will need work the main issue for me is location , foundation then ,sewer,after that all other issue I will take on it is just a numbers game .

Beware of additional fees for sending you accounting every month, etc Someone who does master leasing does not play those games.  

Last, for a first LLC do you suggest using an attorney or is it just as easy to do it using an internet based services? 

The question is if this property you are considering slashing your overhead on is one your keeping for the long game.  

It's just part of the game.

Second, you would effectively have no skin in the game.

While I am a skilled carpenter/contractor, I have yet to step into the real estate investment game.

I bought my first property (4-plex) 3 years ago in California and my plan has been to play the long game and try to cash-out refinance every 2 or so years to put towards another like property.

For some reason they never make it into the game though.Just my two centsAlex

20 years ago.Real Estate is a get rich slowly game so you have to get started and be patient.Real Estate makes money in 3 ways, cash flow, appreciation and mortgage paydown.