You would then fill out the paperwork for them, they turn it in, an inspection ensues, and you either pass or fail.

For the ensueing 20 years, creating a large holding of real estate was the goal.

However a lot has changed in the ensuing decades and now mortgage backed securities are complex financial instruments and banks hanging onto loans seems to be something from bygone days.Nothing I said here should be construed as legal advice (I am not an attorney) or an OK to do this, it was just something I wanted to share for people to consider when deciding how to treat their business dealings.

Our ensuing conversation was about how to find "Fred" or otherwise clear title.

I like your idea of approving an application with a caveat the the unit still get shown (and ensuing applications reviewed) until a lease is signed.  

In any case, we've been clear, and we just need to move forward, and if legal actions ensue, so be it. 

That is why the rest of this post ensued, entirely as a result of what you chose to post.

On our last flip we did replace all of the windows in the house ( the originals were JUNK) and it did make a very large difference in the client walk through and bidding war that ensued it was something that many clients did comment about. 

They try to wheel and deal with a PM on fees to stay afloat and then a bad tenant gets in and the place is trashed and further losses ensue due to mismanagement.    

If you intentionally price a tenant out of their home, be prepared to accept what ensues, even if it's as little as a vacancy without damage to the property.