I found an REO with a "special condition" that seems to scare others away but I see as a non issue opportunity. 

Your schedule E tells the story.Could your tax specialist have been referring to some state issue and community property? 

In regards to your next flip, I bet you will have no issues cutting the flip time in half now that you've worked out the kinks in your planning, timing, budgeting, etc.

By then I've already terminated the contract with the seller because they wouldn't renegotiate based on other issues I found with the property.And the land survey company still demanded a full payment after they delivered report late.Is it normal for land survey to take this long?

They are way overpriced or some major issues with the house.

Sorry for the life issues your family is facing .

If you were, they would have coached you on what to do and how not to get stuck.If you get the mortgage in your name, then that doesn't solve the issue of putting the loan under your wife's name only. 

The sibling and inheritance is not really the issue at all.

I am looking at a few multi-family properties (4-6 units) in and around Dayton.  I typically like to purchase/place my properties into an LLC, but I realize this means commercial mortgages (higher rates, higher down p...

The biggest risks financially would be that you buy into a condo association that issues a special assessment in the future or starts prohibiting rentals.