I’ve already contacted the seller and just need a buyer who is interested in this to close with me( I’m a wholesaler).

So, just give it your best self-help effort to find them, and then let the GAL do his or her job.As far as an ejectment lawsuit, the real question is, was the property legally abandoned?

. - Initial investment of $145K (DP+closing)- It had one tenant for 5 years and 3 months (no turnover), and the tenant paid off the mortgage and expenses in those 5 years.- I spent around $30K to do upgrades before selling.- Sold it for $915K after 5.5 years (received $442K at the closing)- Did 1031 exchange and bought 8 SFH in NE & AL worth of 1.6M (brings $4k/months income now) What made you interested in investing in this type of deal?

However, at the closing table, we discovered it was zoned as a two-family residence.

I don’t have any legal advice, but maybe some helpful perspective.When we return security deposits, we write the check to all tenants on the lease, such as “Tenant A or Tenant B”.

In terms of structuring the deal you can do it however you want as long as it is legal, ethical and agreed upon by both parties.

Probably not even close.  

There's currently a tenant in the house (who I presume caused the smoke damage), but the seller promises that this tenant will be gone before closing.

Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and it's super landlord friendly (so you will never have to go through a 12 month eviction or anything close to that!).

The lender rep or broker you are working with should be able to walk you through each step so you have a firm understanding of what has to happen in order to get your file to closing.