Within about 40 minutes, I retook possession of my property.

I put a contract on short sale in Birmingham today all cash and my agent come back and added that listing agent said the bank can not give possession from current tenant or homeowner for 7 weeks.

You should do a transfer of the money directly from the 401(k) to the IRA and never take possession of the money or the income tax and penalty will apply.

Once this is done and you have not heard from them, you'll have to go to your local Justice of the Peace (at least that is how it is here in SA,TX) and file after the "Notice to Vacate" leading to a "Writ of Possession".

1 hr after taking possession of our new dream mountain home in Colorado we discover the furnace is emitting fumes.

I suggested we reschedule the closing (to give them time to move), which they also denied.I feel that I am taking on too much risk and liability if I let the seller keep possession of the property.

So do I evaluate ROI and other financial numbers on what I think the rent should be and just prepare to raise some of the rents upon taking possession? 

THe house is selling way below its market value because it is currently junked up with the owner's possessions, and the owner is a curmudgeonly old guy who is not a savvy seller.However, I am simultaneously purchasing the major historic building in the downtown, so I just don't have the capital to purchase this house.

I will look into this.The only concern with your approach, is "when" the grandfather date is.Are you saying you are telling them no new pets on the dat you take possession even though they are under the old lease which might legally allow them to add ten dogs before that expires?

So you could agree to a deed in lieu and take possession of the house.