Are you saying you will actually need to possess the 20% difference in cash to bring to the first mortgage closing?

. :-)  Usually the beneficiary interest is transferred vs selling to end buyer.I still do not like this method - but with the DOS issue, it may be a necessity.One of my concerns with transferring the beneficial interest to the end buyer is if the end buyer stops paying..How hard would it be to regain possession of the property as opposed to simply transferring the deed in the new buyer’s name and doing a standard wrap? 

This happens when one spouse divests the other party’s interest in the property.Adverse possession.

State law says you have to let the unit sit for 60 days before you can clear it out if no one comes to claim the tenant's possessions.  

If the tenant still has possession of the property, an eviction lawsuit must be filed by the landlord.

Nevertheless, I would inquire and ensure that the home is being sold with the typical new construction Statutory Warranties, and I would want to ensure that the warranty start date would be the date you take possession.

You got title of the property but they got physical possession if they're in the property.

Essentially, the criminal act of the third party was against you (more so than the tenant), because payment had been delivered to you and thus was "in your possession". 

So do they pay the entire price of the house if you lose it to adverse possession?

Nothing wrong with putting in the sweat equity, it will make you a better investor and appreciate those that possess skills you do not have.