Hey @Chip Chronister as Jordan put forth,  why not use self directed IRA for your down payment etc. and use a portfolio low not get best rates and proceeds to purchase the property( if you have done the math and numbers work).

My suggestion would be to do the math for your buyer's ahead of time before you make your offers to sellers.  

Unless your friend has the money to pay back the lender the full amount owed after whatever the buyer is willing to pay, there's no deal.Here's the math for illustration (I have no idea what the actual numbers are):  She owes ~60k, the house is worth ~42k, if you subtract ~20k in repairs, now you are down to ~22k of value before you even consider any other costs or possible profit for an investor!

The Charlotte market has tightened a lot in the past couple of months, but you can still find good deal if you do your homework, as @Troy Knight mentioned above, you need to be very careful in the area you buy in.

There is a whole lot more homework that I would need to do before proceeding with the REO purchase even if funds were available.

It may help.http://www.biggerpockets.com/renewsblog/2013/01/19/real-estate-math/

This post is not meant to be a market descriptor of Fayetteville or anyplace else...you just might want to do your homework and go rural!  

I will do my trust homework.

High population influx + very low inventory (less than 2 months) = High Prices (current SFR ave. sale price above $300K)Doing your homework around the ATX area, you'll be able to find a few "Buy&Hold" deals around the $120,000 price and $1,200 rent per month (the "1% Rule").

But flying one requires more homework than looking at a diagram of flight dynamics.You'll need to understand about the property value by looking at comparable sales, determine the equity by looking up the existing loans and liens, determine state of title per recorder's office, see who has legal interests in the property and decide what opportunities may exist.