He is willing to do seller financing as part of this down payment, but does not want to do seller financing on the lot, he would like a 3rd party to be involved so that he no longer has to deal with his banks or the tenants. 

I was hoping that it would be considered a repair as this is solving a problem.Good point @Mike McCarthy, I should find out what are the risks and if something goes wrong, how is it handled ad who pays for it.

I know you can get these much cheaper but the sellers wanted the lawer involved. 

@Michael S. regarding our financial analysis - we considered everything including a complete gut rehab with new plumbing and electrical, but we did not consider that it might be a total loss, or that our gut job could also involve structural repair.  

To your question, I think you have reduced some of the risk by going Owner Occupied.

It seems too much risk.  

Happy to discuss some of the benefits and risks of a foreigner investing the United States real estate market.

Or if any entity is involved it would almost definitely be a different address for privacy and legal protections.  

New member interesting in learning and involving myself with the local real estate market. 

Don't get involved with the mail, tell old tenant to complete a Change of Address card at the post office and the mail will forward just fine.