It probably wont make much of a difference but it cant hurt either.In the future you can try doing these two things1) When contractors go to home depot or any of our suppliers to order material on our account, the suppliers are not allowed to moved forward without calling our office and getting authorization for the order.  

"The Cheap Comes Out Expensive" - Author unknown.I second @John Fedro! 

I recently read an awesome quote from an author I cannot recall-  "99% of people are scared of risk, thats why they are the 99%".  

@Jay Hinrichs, so much for my posts being legend. so far you have not cited any authority that would support your claim. 

In general, after a tenant moves out, the housing authority would send an inspector over to verify if the tenant would still be eligible for section 8 benefits.  

Go there and walk the streets and get a feel for the neighborhood.You are about to take $50k of your hard earned money and invest it in a piece of property, that should give you incentive enough to be the authority on that particular neighborhood. 

I've done this exact same transaction (even R/M in default) many, many times in the past.Since you need a seller with CPA's (capacity, powers and authority), your title insurance company will list their requirements for your seller.What we do not know is if your seller must get sale confirmed by court. 

At no point was it requested/demanded by the housing authority or the tenant to cover the cost of their temporary relocation.

LLs are in positions of power and authority.  

I would also recommend finding a manager that is comfortable working with the local housing authority and understands all of the rules and regulations.