We've done this with inherited tenants/leases.

My client inherited this property from her mother when she passed away a few years ago.

Hello,I am just starting out with 2-BR SFH in Ohio that I inherited this year.

If you find another Lien case for the foreclosed owner that is newer than the Preliminary Judicial Report's title search, that may be a lien that you inherit if you buy the property. 

I inherited two tenants that were paying below market rent.

open admission -CPA here-lots of excitement about OZ but a few points here1-Economics rule so make sure your deal makes sense first and foremost2-For a 1031 The entire proceeds has to be reinvested in order to gain a tax deferral while for OZ only the gain needs to be reinvested3-For a 1031-you can defer for many years and get a step up in basis if the property is passed on as an inheritance while for the OZ the way its written now in 5-7 years you will have to pay some tax (either 90% or 85% of original gain)4-on the other hand for OZ where else can you buy and hold for 10 years and get to FMV it and not pay tax?

This non-paying tenant inherited a house and sold it.

I am trying to determine what capital gains tax will be since it was inherited.

Maybe this isn't a big deal and we just need to deal with it, but I'm concerned we are going to inherit a nightmare.  

@Tyler Kaye seller just said he inherited the house free and clear from his dad, who passed last March.