We don't have very good credit so we cannot go the bank route for a loan, we are looking for hard money lenders but we just have not yet got approved, we have been saving to make this dream a reality so to speak and are just a little concerned with investing all of our savings in a shell without knowing we will begin work straight away. 

I would want to be my own property manager which doesn't scare me much as I have good people skills and good maintenance skills.I'm concerned about getting financing at my age and at my income level.

As far as non US residents are concerned, finance is available for- Second homes (vacation/retirement/personal use).

Second, I am concerned about your research of the area here as you say prices are low.

Feedback from one buyer that has seen the property was their concern about the rot around the door.

The prior action might even have made things more difficult if a large amount of back payments were in a repayment plan that would likely require payment now.As for gaining control of his estate, you need to decide if it makes sense (if there is lots of equity remaining after payment of debts) and if you are the best choice for resolving this, especially if you have the financial resources and understanding to resolve.If you don't think you are up to these challenges, you won't have to be concerned with either repairing the house or the debt.

Since an LLC is a pass thru entity as far as the IRS is concerned, I would say no, there are no tax implications.

If you are concerned about protection then you need to get an umbrella insurance policy to cover the homes and your existing insurance policy. 

If it does, I would be concerned about vacancy, since finding renters willing/able to pay the required market rate to maintain cash flow will be tough, and your pool of potential renters will be greatly reduced.4% - 5% is a safe rate, assuming you can meet the down payment requirements.I am interested to know what your exit strategy is.  

So, the obvious concerns get raised when submitting offers on these.