It was really awkward during inspection, and the downstairs tenant was obviously unhappy, If I had known earlier that she had no intention of leaving I may have been able to handle it differently, gotten out of the deal sooner, or offered cash for keys.  

That’d be awkward, since your seller probably thinks you’re actually a buyer when you’re not really, unless you double close (in which case you’ll definitely need money)3.

If the other tenants knew that the church I pastored was their landlord, I could foresee that creating potentially awkward conversations / situations.  

Sorry @Luke Massaro, I phrased it awkwardly trying to be brief.The IRS treats application of the 121 primary residence gain differently depending on whether you converted a primary to rental or a rental to primary.If you convert a primary to investment and then sell when you can still meet the ownership and use tests then you get the full 121 exclusion and only have to recapture depreciation.If you convert a rental to primary then you have to meet the ownership and use tests and when you sell you will have to recapture depreciation and you can only prorate the gain between times of qualified use (as primary) and non-qualified use (investment). 

A 3 unit property that I am considering purchasing has a water heater awkwardly installed in the kitchen of all 3 of the units.

If you do this, go w/ the awkward silence after you ask them, let them answer and if silence is there let it linger till they tell you.If they don't have a good offer then tell them what you were thinking (higher option) and if you like them why not offer a "discount" since they are "such good tenants".

This is often times a bit awkward. 

I am considering a duplex that has 2 bedrooms and 1 bath on each side. The property has great curb appeal and has been maintained beautifully. It is an estate sale and is a bargain. The catch is the only bathroom is o...

The whole situation is very awkward.

Might get a little awkward the first time you have to serve her a 7-day notice...LOL.