And I overestimated for electric but that's fine.The lawyer has been very helpful in sorting out the kinks both with town and with eccentric owner, who was insisting a friend of friend stay in one of structures past the time the students return. 3 months after the closing.

Long story short, they recommended 20% below market rent (he fought us on the price and we had to basically had to insist he list at our price), gave us a quote for 6K worth of work after initially telling us the unit looked "great" during the pre-move out inspection, and then had that work performed without our authorization after we told them we wanted additional bids because we didn't think that was a competitive price.  

If there's a faster, simpler, and easier way to accomplish the same task, I think the person who insists on doing it the same old way would qualify as the bigger idiot.

Give them the signed lease and they will likely pay.I would probably insist they sign a new lease and only offer a M2M and see where it goes.

As you described it , I would insist both sides be empty before settlement , then you can screen the tenants yourself .

Similar story:  On the Park st deal, the seller insisted on all cash. 

If the living room carpet costs $600 total for replacement, they would pay $480 whereas if they kept the flooring, they would owe nothing since the useful life of that carpet is long gone.If they insist or if you decide to move forward with replacement, have them sign a new lease with whatever terms you wish to offer and raise the rent to market rate. 

The terms are all negotiable and I suggest you negotiate extensions if the seller insists on a balloon.

Insisting they turn the water back on before we close?  

But get the paperwork first.When I went to one of my closings, the attorney insisted on a board resolution the unit was a rental.