What I'm getting at is that I think this is a good deal.I've never put an offer in on a house, so I'm looking for some advice on how to put the house under contract as soon as possible but safeguard myself incase there's mold everywhere or broken pipes, etc.  

There are so,e safeguards available; third party loan servicers, escrow agents, using joint bank accounts, etc.  

But there's a lot you can do to safeguard your confidence.

I am taking the advice of "sticking to the numbers" and not "getting caught up in emotions" during these bidding wars so that we don't overbid and end up losing our shirts, if you will (BP rehab and flip calculator has been invaluable when it comes to creating safeguards around our offer numbers....).  

I'm well aware of how careful one must be when renting to friends, or renting at all, and believe me, I have been planning with experienced adults about legal safeguards and the best way to handle the situation so there is zero grey area.Got a family friend who is a skilled realtor, just helped us get the house we're in now (I'm living with my parents while I'm saving money), and they sold our old house as well.

Seems like a state safeguard to make sure your taxes are properly paid when you’re liquidating assets.

I was wondering if this would be an extra safeguarding step to take when searching for tenants.

My final advice on all this is that I was made aware of the potential risk of using partners (use caution and don't feel bad for wanting to get to know them well enough to participate in any deals) and making sure that I have financial reserves in order to safe guard my future.

I do like that that owners would like to become the tenants and believe setting up a mortgage servicer safeguards the original mortgage by ensuring it is getting paid. 

If you own property you need to protect yourself, but only if you truly have a ton to protect and don't have enough up front (insurance, safeguards) in place to protect you.