The problem is it is outdated and sm for the area so it is not a very attractive sale at the appraised price  and rent would only fetch around 1200-1300 a month as a rental.

I agree that it is a skinny deal if the house absolutely requires rehab before occupancy but they way he made it sound is that the house is very much habitable, just outdated. 

I told them they were responsible for the rent for the duration of the lease, but that I would relist it as soon as they told me they gave me a move out date. 

Or, will it be difficult to find new tenants since they are so outdated?

What I do, I provide a notification in writing then e-mail, and then if possible sign a lease termination agreement, clearly stating a move out date.

Sebastian, The kitched appliances look quite outdated and the hardwood floors do look like they would need to be refinished.

It is in a ready to rent condition with the exception of the kitchen that is very outdated (See picture below).  

It's a pretty solid investment vehicle as long as you know what you're buying upfront, and not to buy something that will be a problem, i.e. sewage lagoons and old/outdated park infrastructure.

@Lucas Carl Unless you are looking directly at deed records, I'd guess that whatever you are looking at to see the niece owns it is outdated.

seems reasonable.. your site has grown so much what was ok a few years back is probably out dated now.