I couldn't agree more.However, I was once asked by a legal person to find all properties vested in the name if the American Red Cross in a certain county, They really didn't know!

@Sherwin Vargas Take a deep breath.  

I tried to figure this step by step on the napkin from the article Rental property numbers so easy you can calculate them on a napkin, and came out in the red.

You may have months and years where you're in the red, but if you have adequate finances behind you, you should be able to absorb those.But if you take one thing from my rambling, let it be this: Come to an agreement (written) with your partners, specifying what will happen if it goes to ****.

Risks should really be assessed and managed rather than jumping off the deep end.

@Eran Greenburg It is a question on habit and how deep the details are really needed.

->if they can start right away it might be a red flag, good contractors have work lined up…-Where are you located ?

I once looked at a property (the limit of my experience) that was formerly a dentist office and the presence of and former use of x-ray equipment was a major red flag.

If you buy these properties you can buy them without title insurance (presumably at a deep discount) which I would not recommend except for extremely knowledgable and experienced investors.If you're willing to buy the properties with title defects and cure the defects, go purchase at the tax sale yourself and cut out the middle man.

I would consider just using a personal unsecured prom note.. one of the good things with those if he does not pay you can simply get a judgment there is no defense.. but if he or she files BK your toast.. so tell him/her  that if you do a mortgage its 1k for title and escrow.. you will take that and 1k for your profit.so 10k  pay back 12k  ... seems reasonable.. although someone buying a home like this and cant put 10k together I think is a red flag in itself..