And THAT's the truth of what people think when there looking at these generalities; "oh, which is EASY, which can I do, pay almost no attention to, do next to nothing, and just cash fat checks".....

:I don't see how the tenants could use the receipt to increase their basis value since they did not own the property when the work was done.But they DO have a binding contract to purchase the property.

Of all these properties, I’ve seen two in real life before purchasing.Slight difference, he's a wholesaler:1) Has no clue of the mystery true buyer will give him a fat check or not beyond his own say-so.2) Has $0 dollars tied in escrow so no loyalty to the deal, which I think is immoral to make the seller take all the risk in reliance3) Thinks he's screwing over the seller at a low price.

As for tactical, how to here's how it's done:Get a legally binding contract.

You know there's an old saying that pigs get fat and hogs get slaughtered.

Your tenants signed legally binding contracts (Leases).

The pace of tenant turnover will slow along as tenants stick around longer hoping to get a fat check before they move on.

This is a non binding agreement on the price and timing of the inspection period and closing.  

You need to move on.Another thing I tell applicants, once they’re approved, is that I’m going to continue accepting applications and screening for tenants until I have a signed lease and all money that is owed (first months rent + deposit) is paid.That motivates them to do those things quicker so you don’t run into these situations where you approve someone and then they just string you along while they (likely) keep looking for another place they like better and you have nothing legally binding holding them to your place. 

The date of acquisition is the date that: You enter into a binding contract to buy the main home for which the distribution is being used, orThe building or rebuilding of the main home for which the distribution is being used begins.Nathaniel Busch, CPA