If you have that much cash it would actually be more efficient to purchase a pre-existing fourplex, put the 5% down and get some concessions to buy down your rate.Hopefully that all made sense.

Whoever is doing your property management on this rental should be able to advise you on what to do with a pre-existing tenant and what rights they have to the property.  

Those issues were likely pre-existent and lip stick was applied to get a tenant in.   

Ike - I'm with Doug on this one.Credit Unions / Local / Regionals are great if you have a pre-existing relationships.

If a property is considered uninhabitable, the Landlord must provide the tenant a hotel at no cost to the tenant (this much is a preexisting requirement).

If this is a preexisting location.  

A pre-existing LLC cannot, but if you want an LLC for asset protection reasons your Solo 401k can own a newly formed LLC and that LLC can own the duplex.

By adding in all property types, new con, pre existing, condos etc etc, and keep it segmented to JUST Luxury real estate $ levels.

The above issues are extremely common with all properties I buy, but what I buy are pre-existing multifamily with some meat on the bone. 

REALTORS® shall recommend that sellers/landlords obtain the advice of legal counsel prior to acceptance of a subsequent offer except where the acceptance is contingent on the termination of the pre-existing purchase contract or lease.