I'm not saying you can't make a decent return on rentals - I and many others here have done great with it - but if you have a well-functioning, profitable business that you know, why would you gamble money into Memphis *******es, to put it bluntly? 

If the seller accepts the offer, (contingent on appraisal[as per court approval requirement]), How should i proceed in the situation.

I would imagine the best actions would be to immediately fire the management company, pass the keys onto a new one, sue the old one in small claims court for the listed damages.

The landlord can then proceed with the eviction process in court if the tenant does not remit payment.

OK Thanks Chad.. yes now that you clarify that and I also work in the low value asset sand box but only to Investors who have money to turn them around I would never count on those owner occ's to cure at least at any large % to easy to  walk  and the properties as you mentioned many will be functionally obsolete and economically obsolete so they turn into your basic zombie house that local wholesalers go for ..

ADUs can significantly enhance your property's value by adding living space that can be used for rental income or as additional living quarters for family members.The increase in value from an ADU can vary widely depending on several factors such as the size, quality, and functionality of the ADU, as well as its integration with the main property.

Far to many real estate investors and RE agents just have no clue as to how the court house works how escrow really works and etc etc..

He's going to screw up like this again and again, and the way these things go, most of the burden of dealing with it is usually going to be on you.As far as him ever taking you to court over this and winning -- this is not the sort of dispute between adults any sort of magistrate feels should ever end up in court.

They are rules of thumb we use to function day to day because the FACTS are too needlessly complicated to use to make every decision in life.

Any "perceived" deception at any point, will be severely counted against you by the court.