Hi all,Multi-part question here, feel free to answer any or all parts.

Was he reluctant or all for it?

This has always been the case, but the industry is taking strides to make it more fluid.Investor Sellers can choose to pay some or all of the buyer's agent commission (that's not new) but this can no longer be advertised through the local MLS AND this must go through the seller to the agent versus through the listing agent like it did in the past.Investor buyers must be signed with an agent to step foot in listed homes.

If one or all inherited tenants are on M2M, which is preferred, you will be in a much stronger position.

You cannot really modify a contract orally, but you agreed to a one time waiver.  

Then, they finally call you because there are no more reserves left in your account, because they spent it all on "emergencies" that they didn't need to call you about because they were emergencies or all under $250 or whatever.And, you will have to manage the manager anyway, if you are smart.So, 1) manage it yourself.  

call hud and make sure that make up an agreement about if any thing does happen hes on that fine line about having to leave or all

First of all, you should be getting an estoppel certificate, signed by seller and tenant, that outlines current rent, current deposit (even if its $0), and any current outstanding oral agreements.

Oh, and say no to paying all up front - could establish a longer-term contract, or all cash - you only want people renting from you who are the type to have a bank account.Anyway, if I scared you...well, maybe that's good haha. 

Once again, I know no one making money in Sec 8 who isn't handling much or all of their own maintenance, cleaning, renovations, and turns between tenants.If you're willing to take over this management, then I have to ask you, how many trapped but thrashing rats have you beaten to death with a 2x4, how many alarm calls have you responded to with a gun?