Another issue, there is so much to learn so I'm afraid if I try to start from scratch things won't work out.

If the numbers don't work out then it's simply not worth it.I feel like you are trying to find an excuse to buy that expensive airport food because you are stuck in the airport. 

You may have some claim against the seller your Sales agreement so that's worth checkingGood luck with the workout!

Sounds like going this route may help me work out the financials a little easier and living on the property could help with my learning curve overall??

Make sure your family is comfortable with the fact that some deals may take way longer to turn around or simply not work out.  

If you're going for a VA or standard FHA loan, it'll need to be replaced before closing; otherwise, it's up to you and the seller to work out the terms.

Try and work out exactly what you want from the investment and what amount of time you want to spend on it.

I usually sell notes I can't work out on there.

The owner wants me to spend a few thousand dollars to pay her attorney to negotiate a short sale with the bank that may or may not work out.

Anyway, we've had abysmal luck with contractors in Denver (so much work out there due to the hot market) so the rehab took longer than expected (8 months) so we carried 3-4 additional months of carry costs from the original plan but all in all worked out in the appreciating market.