. $700 each 6-month iteration), but will reduce my mortgage interest by over $200k!

But paying off the principal would reduce your risk.

I would definitely consider putting the property in an LLC and then memorializing the expectations/agreements in the operating agreement.Also, I hear that property management will be handled by a family member in the future - I would make certain that this fee is also ironed out ahead of time, whether you are hiring an outside person or family member.Have you considered syndicating the deal and offering it out to other investors?

Hope this helped and feel free to PM me if you want more info on how the 2 unit associations handled their coverage. 

I always want to dive into deeper water than I can handle, and feel that is my only way to learn well.

Additional info, I am a business owner, very busy with my business, no time to handle flips or that kind of thing, just looking for solid investment / cash flow, and need tax benefits.  

Several members have pointed out the risks and pitfalls of buying there and some ways to mitigate those risks.Major risks are: 1. unacceptable, but unseen damage2. title defects, leans, and second mortgages convey to you3. entering the property risks in legal issues and getting attacked4. bidding gets out of hand running prices up near mls valuesStrategies to reduce risk:1.

@Cody DeLong If you want to see delinquent taxes you should be able to get them from the county or whoever handles them in your area.

If you can't do that and need to take cash out or reduce your debt you can.  

The out of state properties are being handled more like a business because I am forced to do so.