Did they surrender possession by doing this or do they still technically rent because sec 8 put their $ in and we havnt gone to court/served them a summons yet?

I had to first evict the investor to gain possession from him, and then evict the tenant who was living in the property.  

They also place a tenant, usually before you take possession, so it can cash flow from day 1.You can finance with conventional financing upfront. 

When you screen, look for the person who is willing to take possession the soonest and most qualified.

How did the building come into your possession?  

Usually after possession so you can begin showing the property.I hope I’m understanding the question correctly?

This being said, the 1st of our 3 opportunities will be an ongoing funnel of bank approved clients that are looking for a new home which we can provide that is basically hurricane resistant due to our patented building system which will be built on lots being offered to us by a private land owner, who will get paid once the home is built and family takes possession.

As you probably already know, entity protection is not really a cut and dry standard, it's a cross reference between the value of the asset, the risk or liability the asset possesses. 

@David Finley,Check out your state laws on adverse possession.  

I agree with most comments above, it is very likely you will have the property in your possession again in a few years, the other issue is, lets say you apply $200/mo of the rent to principal, because the tenant is "renting to own" Fannie Mae, Freddie Mac and FHA do not recognize the additional rent paid to principal for down payment, because they lend on the purchase price, and no matter how you word it, they will not accept $10 or $20K as Down payment for the loan if it was paid to you over time. also if you need to remove them from the property it is possible a judge may see the principal payment as equitable interest in the property, there are many hag ups in this strategy.