This is an outstanding offer by the way...especially for an out of state broker referring a buyer to Southern CA.

@Nolan M.That's outstanding!

Just make sure you have an addendum on the purchase contract acknowledging  property is being sold with no outstanding reservations otherwise they might come after you.   

@Eli Altman , Good Question.The cashflow before depreciation needs to be in your personal income statement.The net equity ( FMV net of your outstanding mortgage) need to be in the balance sheet.Here is the template that automatically calculates what I talked about.You can find it here and look at the sample file to see if that is something you are interested.evaluatedeals.com

Depending on your income, credit, outstanding loans you may be able to put down as little as 5% only if you plan on living in one of the units. 

. • If a SEC 8 tenant has an outstanding landlord judgment, HUD will not reissue their voucher so they can move until the judgement is satisfied or a payment plan has been agreed upon. • SEC 8 tenants are educated in the process of home inspections and are quick to call if they see a problem that may compromise the house, such as a water leak. • In Hampton Roads, SEC 8 pays “market rent” in every city except Portsmouth, where they pay 90% of market rent. • After the first 12 months, SEC 8 will consider a reasonable rent increase, regardless of the lease term. • SEC 8 tenants almost always pay a portion of their rent.

@Jamar JonesYes Jamar, that total would be the outstanding balance that the owner is responsible for

I can't tell the timeline, but there is a chance the loan officer did not make a mistake and that underwriting for this company is where the final say is made on outstanding loans like that.

You would also need to get everything in order on your end, things like your entity documents, asset statements to verify your downpayment/reserves, make sure there are no outstanding liens/judgments or accounts against etc. 

Could a title agent be able to identify which properties have outstanding debts from previous tenants?