Understanding what you are buying is critical with any investment and planning ahead to keep it operational is equally critical and often overlooked.  

People that get ahead take highly informed and calculated risks but there is still risk regardless.Over the years and years I have been on here I have met some great people and then some not so great ones.Some tips are:1.

. - Don't pay ahead of work completed, or at least minimize payment.  

Hence the city decided to go ahead with demolition and put a lien on the property.

The main one is to have a fiduciary duty to put their needs ahead of your own.

You will be so far ahead,  real hands on experience.

Not answering for Don... however like most things the sponsor of your investments is critical.I have also seen my fair share of investor who really did not know what they were doing buy Seconds at foreclosure sale thinkning they just bought  a 500k home for 75k .. and leave with  a huge smile on their face until they realize there was a 600k first ahead of them  LOL.not making light of your situation.. but in the future you can run title on notes.

If you think there is appreciation ahead in your area, you could even lease it for a couple years before selling and still sell tax free.

My biggest mistake and thing I wish I knew ahead of time has to do with the 203k loan.  

You have no idea how many people I know who've had contractors threaten to just walk off the job (usually when they've been paid ahead of their work, something I specifically don't do); given that, I'd like to to avoid all the lawsuits by being able to show the contractor the clause on the contract "hey, remember when you signed this?"