Any update on this question, I'm also in the same boat and would love to know how to proceed.

As with an STR, so long as you set and document clear expections, it is on the guest or tenant to proceed accordingly. 

I had the Marshall serve him papers on 7/13, so he has a couple more weeks to move out before I would need to start any proceedings.  

The actual cost of the turn is $2,843.17 but the security deposit returned to you is $1,650 (may change slightly on finalized intent to claim proceedings.) 

Title issues tend to be the fact pattern where properties are truly not financeable but that's rarely the case when you see the "cash only" adverts.Ultimately, proceeds will be transferred through a title company and its not as if the buyer is showing up with a duffel bag filled with cash.

My dad and I (both with access to VA loans) are about to get into the multifam game and how we proceed is really going to depend on the true occupancy rules for the VA and our lender.

In my case I sold off appreciated properties in a location I deemed as having limited future upside, and used the proceeds to eliminate all debt on the better located prime properties I wanted to keep long term.

 @Bill B. in addition, the TAR seller disclosure form in Texas also asks specific questions regarding insurance claims and if the proceeds were used by the seller to make the repair.

It means that you, as the purchaser, cannot close on the purchase of the property until (subject to the terms of the contract) the seller identifies a new asset to acquire with the proceeds of the sale. 

https://natlawreview.com/article/texas-federal-court-issues-nationwide-injunction-against-enforcement-corporate“We note this is a preliminary injunction, and we urge reporting companies to pay attention for additional updates and proceedings in this and other cases which could modify or change this order.”