It is my understanding that profit made from an investment out of state will be subject to state income taxes.

Before you get confused what 'REVA' is in my subject title its an ongoing latest term used for 'Real Estate Virtual Assistant'. 

I'd check Craigslist, rentometer, realtor.com and any other site that comes up when you google this subject.  

I would offer to take over the debt subject too, and get a quit claim from the father in law. 

As for the down payment, I was considering having my business partner deposit the a small portion of monies into escrow, but you are claiming it needs to be seasoned; possibly 2 months, like residential loans.Also, I was unaware that on commercial loans a reserve would be necessary.I'm aware, on residential investment properties, a 3 month reserve on existing loans is required, and a few months on the subject property.

Thanks for the help on this subject, another question however...When entering a deal that is outside of the traditional financing methods (purchase from a wholesaler/motivated seller/etc.), is it wise to already have a pre-qualified document expressing what you're allowed to purchase?

This is a REALLY broad question.More of a subjective question as well.

Welcome to the BP community Account Closed just wrote a blog article on that very subject:  http://www.biggerpockets.com/renewsblog/2015/05/18...    

But the caveat is you must really like the subjects to do well...

Heard of some guru try to clear the liens negotiating with the holders but this area is subjective on how much allow to clear