I plan to fix and flip or use as a rental for some time and then resell depending on the numbers once I get possession of the property. 

Just because you did not do a walk through upon possession doesn't mean you could not inspect it yourself and document damage. 

A well capitalized person could give her a square deal and still make out ok if the numbers make sense.A life estate like Jay mentions is where she basically gifts the house in exchange for lifetime possession without upkeep hassles or lease payments. 

I'm thinking perhaps even if it's a C class neighborhood, not only thinking of renovating the units is good to attract better tenants, but protecting possessions/creating extra storage space might be a benefit?

. : If a lessee of real property remains in possession thereof after the expiration of the hiring, and the lessor accepts rent from him, the parties are presumed to have renewed the hiring on the same terms and for the same time, not exceeding one month when the rent is payable monthly, nor in any case one year.Likewise, a tenant could terminate a periodic lease by giving e.g. a 30-day notice, and - surprise, surprise - instead of moving out, send the next month's rent on the day of the planned move-out.Frankly, I don't believe this was the intent of the law.

In some states they would still be considered to be in possession until a judge signs the eviction order.

@Ahmer Zaidi, @Patrice Boenzi - @Justin Abdilla makes a great point regarding short sales vs. foreclosures.Foreclosure is a legal process through which a lender is permitted to take possession of a property after a borrower has allowed a mortgage loan to go into default.

We require "cleared funds" (either a cashiers check, personal check that has had time to clear, etc.) to gain possession - but how do you clear funds that fast?

(Of course possession being 9/10ths and all making it hard) but still possible....hope they left and don't contact you until the lease is over.

I have personally people who have taken more than 2 years and over 50K in legal costs to get possession.