Trying to get my 2nd Rental from Free and Clear Sellers

[Chad Thomas]

Ok, so I have an opportunity to purchase a 3br/2ba SFH in Concord, NC for 85K. Looks like a potentially great rental as Zillow has rent zestimate at around 1100. I was probably going to just shoot for 1000. Thinking I could have as much as 500 monthly PCF...maybe even more. I've already got pre-approved with Quicken but they want 25% down...which could be close to 26K out of pocket at closing. Might be able to go with Wells Fargo (who I work for) ...at 15% down, plus 1/8 to 1/4 pt off and half off processing fee (for being a team member). That seems like a no-brainer. However, there are a couple concerns or things I'd like to get input on if possible:

1) The sellers own free and clear and haven't even listed yet. They're actually my ex-in-laws and I have a great relationship with them. They know I want to get into REI and they have several other properties that I might be able to get eventually too. They're in their late 70s/early 80s and looking to start parting with some of their properties. Needless to say, they're pretty well off! What's best approach at possibly getting this property without putting money down? I'm just getting into REI and not quite got a supply of cash yet! I do have one rental already and have pretty good credit (mid 700s). Won't have access to the up front money for another 5 months though :(

Thoughts...suggestions?

2)  They do have tenants in this house right now that have unfortunately taken advantage of them and haven't paid rent in close to a year.  So, was hoping to leverage that as a way for them to get rid of the headache!  However, having said that...I do not wish to "inherit" that headache myself.

What's best approach with that?  Should I offer to help them with eviction process on these renters (or "squatters I should say)?  Not sure what proper course would be...

Thanks in advance for any good insight guys !!!

~Chad Thomas