As the value of that arrangement would be above the appraisal amounts alone, someone would be purchasing the whole shooting match. 

There is no cross-entity leasing arrangement. 

I arranged a rent to own program for them.

So they handed each tenant $500 to leave the building for “48” hours, and arranged to have the building burned down.  

Long story short, I ended up hiring a general contractor under a cost-plus arrangement. 

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

From experience, a good number of those who apply without viewing the property tend to rush the process and may try to hide disqualifying factors.I recommend sharing your screening criteria and fees with prospects before arranging a showing/applying.

(Other financing arrangements might be possible.)You can only obtain one home equity loan per year, even if you have fully paid off the prior home equity loan.Regulation of LendersTexas restricts who may lawfully issue a home equity loan.An unlicensed person is not permitted to make a home equity loan unless that individual is either related with the borrower to the second degree, or is the seller and is providing financing for the property.A home equity loan must be secured only by the home itself, and the lender may not attach the loan to any additional assets as collateral.

I collect the first month's rent the day they move in.In my area, I am comfortable working with the existing tenant to arrange showings before they move out.

In a rent-to-own arrangement, you typically enter a lease agreement that includes an option to purchase the property later.