Most tenants I’ve had would try to reach a compromise/settlement with me when they wanted to break their lease.  

It’s differential settlement is what you have to worry about.During construction yes you will feel vibrations rtc.

The HUD-1 settlement statement will show the loan going to you, then the rehab money going back to the lender to hold in escrow until you do the work and get it inspected.  

Include copies of your documents - signed agent contract between you and your broker, the RPA showing you as the agent, the HUD1 settlement statement showing commission amount paid to your brokerage, Buyer Brokerage Agreement if you had one, and any other document that might help show what you should’ve been paid by your broker. 

And if you don't want the seller to see your assignment fee, you can ask the title company to provide the seller with a "seller blind HUD" or "seller blind settlement statement".

And, if you want to resell it to an FHA buyer, your buyer will need to wait more than 90 days before he can get an FHA loan.That said, both of these time frames are from the settlement date, NOT the deed recording date, which can be months later...

The lender will work directly with the closing company up until the closing day to make sure they have the most updated HUD/Settlement statement to know the full amount needed to fund.

Long story short... tenant is long gone, place was trashed, renovated top-to-bottom, insurance covered everything including lost rent during renovations (actually netted $4K on the renovations from the insurance settlement), bumped rent up $200/mo to new/current rents and have a sweet older lady moving in any day. 

You will pay the current tax of $1500  at the settlement table. 

The past due taxes simply get paid off at settlement.