I wish there was more freedom to determine if someone is a reasonable risk.We have cautioned investors about Minneapolis for the past couple years.

@Jim Roach, determine a current value for the package of notes that you both can agree on. 

It depends on if the loan is FHA, VA, USDA or conventional and if the guy you are buying from went through escrow or just did a "kitchen table closing", if the property was in foreclosure or late on payments in the last 6 years (right, you're in Washington State - where socialism went when it died in the Soviet Union) (I'm from Seattle, by the way ;-), how the underlying loan payments are being made, the status of the person on the underlying note, you have to determine who is going to pay the excise tax on the transfer and of course you need to see the terms on the Lease to Own, etc.But, yes, it should be able to be done.

Just by joining you are taking the 1st step to financial freedom.Ultimately, you will need to decide on your ultimate goal for investing in real estate and then determine how you want to get involved/start.

I'm looking for some assistance in determining what to offer the seller when you don't physically visit the property. 

You have to determine if the cash out is worth it. 

How can I figure out what real estate markets are good to invest in, if so what are some things I would want to look at to determine if the market is a good one to invest in.

You just need to do your research and determine your market and submarkets of choice.

I've tried searching houses for rent, but damn near everything I find is a unit in a multi-unit or at least part of a 2-flat, so I'm not sure how to determine rent on something like that.

The numbers work "OK" if i have to spend the extra money, but i need to determine if i NEED to.I think long-term, I'm more concerned with liability than sort term gains/savings.