Now dead people can't hold title, so the husband's interest is held by his heirs and/or beneficiaries possibly subject to claims of creditors, which may or may not be your seller. 

The correct answer is have 6 months of rent plus a regular security deposit held in escrow with the title company.

As for your money, it is not being held hostage by any means. 

The larger property will be required to be held in an LLC.

Enough for a downpayment on a small multi-unit.I think I understand I can roll this capital to a SDIRA, but for a buy and hold plan I won't get depreciation if property is held in SDIRA.

On the city inspector I'll try but likely no consequence, our attorney says municipalities are not held accountable for things like this 

stocks sold that were held for more then 12 months is a common one 

I would highly recommend this be held by a title company if you are to proceed with another assignment transaction to better protect yourself. 

Can mess with your 121 tax exclusion at sale.I never held any residential RE in LLCs, just commercial.

The agent shall not be held responsible if any occupants are present.”?