Further, standard contracts usually have a place where "specific performance" could be chosen as the penalty. 

I have finally chosen where to begin and I have so many questions.

I was wondering if I am in the preliminary stages of accepting an offer and having the seller write up a contract, do I need to have a title company chosen soon?

=)I called my tenant and offered him 2 options. 1) he could pay rent, utilities, upkeep until I found a tenant and then get his full deposit back minus any damage or 2) he could forfeit his security deposit and pay me 1 additional month of rent and move out this week.He has chosen the second option.

Our company has chosen not to accept any type of government subsidy though I have spoken with many investors who speak very highly of the programs due to the guaranteed rent.

Had you chosen not to renew the lease as we discussed in December we were planning on updating both items prior to relisting it for rent.

The other option is that the investors would own interests in the limited partnership or LLC, which would itself own the note and be listed as lender on documentation.If the fractional interests method is chosen, an argument can be made (growing weaker every year) that the investment is not subject to securities laws because loans are excluded from Federal securities regulation in some regulations.  

The seller could have chosen anyone for this but yet she have chosen me and i do not want to let her down.........Please give your full an honest opinion i would really appreciate the help because i do not know what to do, there may be another solution i could take that you may know that i do not.

It will depend on the chosen custodian's fee schedules, the state in which the LLC is formed, your transaction activity, etc.

I'm concerned that I have chosen a bad area, and that the people in this area simply will not be qualified by traditional renting standards.