Now, if you avoid having any debt service costs, then that makes it a bit better.As to the post by @Corey Dorsa, I am not 100% sure of the laws in NJ, but in CA and many other states, one can not legally file a mechanics lien without having a valid contractors license and specifically in CA, that contractor must also meet other specific criteria to be allowed to file a legit mechanics lien.What I would do n this case would be to have the family member/seller sell the property to you with title transferring and have owner carried financing at a super low rate, say 1% for a one year term, then you have all legal rights and title to the property, can legally do the rehab as the owner, then sell the property, pay off the family member and keep your spread.

It's been gold for us.

As a student house, you will fetch more rent ($400 - $500 / rm depending on who's paying the utilities) and, while that will still not make this a good deal, the house may carry itself until you have the opportunity for resale. 

However, the lender has said that I will need to create a Delaware LLC which will carry the note and have the properties deeded over under it.

@Pete Storseth I guess I may not understand the original question... but based on what I think you're asking, owner-finance and lease option seems like a more reasonable option that the wraparound, even though you're carrying a lot of risk for the term of the lease, for not much money in the meantime.

If it was located 5 miles in any direction, it would be a gold mine.  

I think a Sub-To from the Seller, and then you carry the note via a Wrap to another Buyer is a good option.Let us know how it goes!

Then they offered the Mastery Program for $15,997 (Silver Package)  $19,997 (Gold Package) and $24,997 (Platinum Package)...

If I were a buyer I'd think of a wholesaler as gold.  

Read blogs, post questions, and the podcasts are gold!