Listening to the podcasts and reading some forums,  I get the feeling that it is better to just start fresh and not to inherit tenants. 

Doubt you'd have trouble with the appraiser or bank--your main concern, which is already clear from your post, is if/when the municipality uncovers the dark secret hiding in your basement.  

FP's refer you to someone else as our stalwart friend and freshly minted Certified Financial Planner @Scott Jensen has done three posts back.

Your list should show that if it has owner info.I would mail monthly and track the results in detail including best day to mail, type of piece that gets results, owner occupancy, area and type of property that gets best results etc The more you test and track the more patterns you can uncover.

It gives them a fresh start, and also documents any current damage/condition of the place for when they move out.

Do not renegotiate on minor details... but always assess the deal as new information is uncovered.

Sometimes the best medicine is new surroundings and a fresh start:).I totally understand the emotional attachment to the house since it's the home you were raised in.  

Fresh bagels from Silverbow Bakery sounds amazing right about now! 

Yes, tile can last forever, but in my opinion after 10-15 years the styles change enough that I don't mind ripping up 10 year old flooring to put in the latest trends so the unit stays fresh and updated.

What happens when you uncover a truly motivated seller who simply doesn't have enough equity to make the numbers on a flip work?