It verifies identity, checks rental/employment history so I can cross-check what they've provided on the application, gives me a complete credit report and score, and lists any criminal history.Some people charge higher, like $40 per and spend only $20 on the background check.

They got the business building constructed, the business equipment moved in, and the house plans underway, while living in an RV on the property. 

They're both concerned about identity theft.

I am fully not equipped to move forward just yet, but what is the usual next step after finding a motivated seller in terms of conversation with them?

You should have done it long ago.Do you have any idea how many landlords end up losing 2,3,6 months rent in identical situations as you are in due to their inaction.Act first, ask questions later.

The tenants rental property will cover all of their personal belongings and since you are using a PM company I would assume you will not be keeping any landscaping equipment, tools or possessions at the premises to need that much coverage.

Is there a reason you are protecting their identity?

Just a little worried with all the negative news about identity theft. 

Anyone transfer their personal tools to your llc and deduct them from your taxes? Looking to see if this is possible.

Searching the forums, I found some information about yr end truck purchases, but not for large equipment.