Depending on what you're using the LOC for, there are different options. 

It just depends why and for what purpose you want the property as to whether or not it is a good deal.

A lease option can be nullified pretty easily depending on the wording.Last thing, make sure you do this deal through an attorney if you decide to follow through. 

Depending on the rehab estimate from contractors, we would determine if it makes sense to fix it up first or just sell as is.

@Phyllis EffahI would look to forming the LLC in Alabama as that is the state that you will be considered doing business in.While CA does have a $800 minimum tax; you may be able to potentially avoid having to pay it.This will depend on the level of activity of your partner/member who lives in CA.If he is a non-managing member and doesn't make any decisions regarding the LLC; it can potentially be avoided (money partner).

Good buys north  of Huntsville too if you are ever interested, depending on your comfort level.

But it could be a stretch depending on how you use them.

@Edison ReisHomeowners are allowed to cultivate up to 4-plant, what Tenants are allowed to do will depend, to some degree, on what amendments / interpretation of the Residential Tenancies Act in your province.We updated our leases over a year ago to add cannabis to our prohibition on cultivation of any crops (food, tobacco, cannabis or commercial) within buildings.  

It depends on what type of property you're trying to acquire

Can explore a trust too, but depending on number of properties you have and size of this one, might not be the most cost-efficient solution.