Your family member could also provide the financing on it and make money every month with a positive cash flow spread between the debt and the rent collected or be like a guarantee person that is the main backer for the long term loan your Bank or other lender that  owns that property with a long term loan with that property  on a security  loan until that loan is paid off.Not saying the fix up budget makes this decision fairly difficult but i would say to not have a house that needs over $5,000 on the "make ready" expense to make a 20% gross return giving a cost price and sales price you gave on your example.What you could do to find a deal is pretty limitless. 

Even if it’s delivered “vacant” it sounds like they’ll be new to returning “squatters” within a week.

@Adam Philpot If they can't provide a rent roll, just request their tax returns from the past few years.

In Texas the only annual costs for the LLC will be filing the tax return and franchise tax form if you use a CPA to do it for you.

Also, would anyone suggest getting certified mail with a return receipt?

Frankly in order to avoid any potential litigation, and if you aren't concerned with a potential return post the 60 days, I'd wait until all their stuff is out.

Some lenders may offer to cover closing costs in return for a higher interest rate.

This is not the approach for a typical investor that is looking for returns.

Of course, I worry about college costs in 3 years when my girls finish high school.

on my tax return?