The job would be lengthy and difficult with the unit occupied.(4) There is no guarantee that if she moves out 6 months after the painting I will not have to re-paint portions to make it look move-in ready again.  

The contract and closing processes can be lengthy at time and can be relatively short and sweet at times. 

I apologize in advance for the lengthy post, I have many questions and I am very appreciative of all feedback, critiques, and/or advice.    

Put $40k in escrow. did lengthy inspections.

I'd like to have them serviced as I'm concerned about keeping things at arms length.  I

A quick Google check revealed that the tenants had lengthy records including bank fraud and identity theft. 

Which will either limit your money back to the LOWER amount of 75% or your purchase price AND it will also give you a higher rate than a traditional refinance.So I wrote a very lengthy article about how to properly structure a cash purchase HEREIf you follow that strategy you can get your money back faster and more of it at a lower rate. 

REOs are similar to most sales except they have lengthy addendums that elimate any seller liability and require you to close on time. 

What you describe would likely result in providing you with benefits... you should never be involved in the same transaction with your 401k if you wish to stay out of trouble, here you will find lengthy discussion on the same topic with a lot more details, hope you'll find it helpful: https://www.biggerpockets.com/forums/51/topics/527...

I apologize in advance for a lengthy post but I am trying to paint as clear a picture as possible.