Many of us obviously have LLC's and buy in the name of the LLC. 

It would have to be a strong deal for me to go after it like this and if the cash flow isn't there to comfortably cover both notes it would obviously be a no go.

That is a pretty small town, assuming it is a good deal which I'm not totally convinced that it is, you might put in some calls to the buyers or buyer's agents of other rental properties in the area or even ones that have recently been listed for rent.

I will likely just adjust the offer to cover the $ amount the seller would receive in rent.There are two factors that concern me in the potential difficulty in getting the tenants to vacate the property, 1 is they are paying very cheap rent for the stats of the home and 2 the grow room obviously was constructed with considerable effort which I anticipate may influence them to dig their heels in and potentially squat illegally. 

Looking through records of the BK court they have listed on the trustee's report State tax commission claim allowed $30K and a /IRS claim allowed $50K    but I don't see any liens on the property in the county court clerk records. obviously I'll meet with an attorney (because this bankruptcy is so drawn out)  before I bid on the property (courthouse steps) but looking for thoughts/opinions.   

I was able to secure 35% of the total equity ONLY.

I obviously am not a decision maker on the matter but here are my two cents.

I am open to the idea and have some thoughts on how to structure it, but would obviously like to run it by a lawyer to make sure I'm not missing anything.

You have a couple chinks in your armor. 1) she put you on notice that the tree had issues (legally you are responsible for a tree of it's obvious that it's compromised in some way.

The formula is simple and is as follows, 75% of gross rent - PITI = net rental income.If net rental income is positive its added to your total income and improves your purchasing power.If net rental income is negative then its considered a liability similar to a credit card or a car loan that you gotta qualify for.Some banks have "overlays," or additional requirements they place on top of borrowers when you have rapid acquisitions of multiple properties but by no means is 2 properties in one year considered "rapid," by most lenders, however 3-5 would be its an underwriter and case by case bank "call," to make.