That tells me that the bank may have claim to full ownership but hasn't exercised it's claim(So it would not work for her to try to sell me the property without the bank's involvement prior to closing). 

Secondary/tertiary or submarkets just outside major metros typically have low rent appreciation, lower returns, but are generally more stable; like you said, I think poor performing assets in these areas are great to invest in an "up market".

Putting everything into the performance of one property is actually riskier than buying multiple properties with mortgages in many ways. 

We were set to close on our first duplex in the homestead area and were performing our final walk through when we found out the place had been completely ransacked by someone who stole the copper wiring, furnace, water heater, and destroyed the kitchen and bathroom doing so.

I've read books (Turning Distress into Success; Performance Anxiety; Seller-Financing & RE Notes in the Dodd-Frank Era), explored the posts in this forum, listened to @Bob Malecki 's BP podcast episode, and now have some (hopefully reasonably intelligent) questions to ask.

So perform you due diligence. 

@Jeff B. your reply would be relavant if this was a performing property; however, as stated it's new construction.

No one has hired the investor to perform any service.  

Trevor McGregor, Joe's Peak Performance Coach, blew our minds with that and so much more,5.

@Teddy Johnson, you're certainly right to resist this arrogant exercise of power.