As an added note, I came across a blog, by Michael Thiele, a Residential Landlord and Tenant lawyer in Ottawa: http://ontariolandlordandtenantlaw.blogspot.ca/?

So, in the planning for acquisition, you would want to have sufficient funds available to finalize that course of action (i.e. lawyers, advertising, recordation, and other misc expenses). 

as with any advice, im no lawyer...so, CYA, call your attorney!

RM1 would be great, but with RSA-5 you would/could apply for a change of use to a triplex (I'm unsure of legal requirements.. may need a lawyer to guide you down this path).

@Vernon L Keene good luck and good for you taking this on.I'm not a lawyer and this isn't legal advice and should be checked with an attorney in your state but, you mention setting up an LLC which is great for holding properties but you probably want to set up an S-corp for flipping and wholesaling and don't mix them or you will lose the passive tax status of your buy and holds in your LLC.  

I am not a handyman, but I am a lawyer by training and I've helped with somewhat complicated deals before.

Agree with @Alex Deacon and @Steve Babiak about hiring a lawyer.

About 6 months earlier, I sat down with a lawyer to form an LLC, pay for a sales contract and a lease agreement.

I got this info from my lawyer/friend who kindly looked it up. 

Because the previous owner actually died there is one hoop the lender's lawyers were supposed to jump through to do the foreclosure process properly.