Also, get involved in the forums on BP.

Your best bet get a good insurance policy.Joe Gore

Your best bet is to find a deal where the total acquisition costs (including any deferred maintenance) are an amount that will equate to a positive cash flow return.

Most sales are not that distressed, most properties were exposed to the market at different times or for sufficient periods, there is a bit of pride and ego involved with folks patting themselves on the back closing a deal, usually, what they paid is or is pretty close to what its really worth at that time.

Get involved, ask questions, contribute where you can and enjoy the ride!

Do I have to get a title company involved?

I bet your civil engineering background might come in handy in RE investing.

A HELOC (or Prime Equity LOC to be semantically correct when it involves a rental as @Chris Martin has pointed out elsewhere) will have its adjustable interest rate pegged to either Treasury or LIBOR.

I have to assume that with the size of house I am building, there will be kids involved.

All of this is negotiated and spelled out in your operating agreement your attorney sets up.Expectations have to be clearly defined and agreed to UPFRONT as equitable for all involved.