I know it "could" be done, but I have my doubts about the practicality of it-has anyone done this recently?

The sister is just willing to place someone in the house RENT FREE just for the sake of someone being there since the property is a hour and a half away.Is there a way to remove the sister out of the picture without stepping on toes too bad? 

He did a practice inspection on one of my properties last fall to complete his training and owes me a beer!

Look at going a few steps above builder grade. 

My only concern with stepping forward into real estate investment is that I don't know what I don't know.

You can read about our experience looking in (2) different markets (one in person and one never even stepping foot in the state) and managing some light rehab 1,200 miles away in my post below.https://www.biggerpockets.com/forums/223/topics/54...

Having a hygienist come in and test is step one and that'll run us about $700.

I definitely intend to be as fair and honest a person I can be inside and outside the real estate field, knowing these practices help me as much as they help others.

What are the legal steps to start building a spec home?

I know that on the residential side the process is pretty structured, but how does it work on the commercial step by step before you actually sign a purchase and sale agreement, that is you are expressing your interest to purchase and documenting what you need from the seller but before you make any non-retractable commitment?