I will never buy in lower income areas (Class C)  regardless of state and with the landlord tenant laws in CA, I'm apprehensive if I need to evict a tenant who can't pay rent or causes problems.

I can't speak for this deal in particular, but you'll always pay more for turnkeys-- trade-off for not having to do any work.The only thing I see in the deal is Norada didn't include estimates for vacancy and repairs, and I would never analyze a deal without including those.

I've learned some hard lessons with tenants, so I'm totally ok with not letting her renew, but also if she's been able to pay rent with unemployment maybe it can work? 

Our goals: Obtain another investment property while not having to pay anything for a down payment.I envision that my in-laws would use $250k (equity in current house) as a down payment to get into a new smaller location.

Title company pays off $450k note, QI holds your $550k that you’ll then use as a downpayment on replacement property or properties.

Any of these things happen and you’re on the hook for a lease you can’t pay.

My Father has been renting us a house in OBX every summer since I was a kid and were both pretty affluent now and I'm floating the idea of us going in together on an Oceanfront somewhere in OBX that we can use a few weeks a year and have it pay for itself via rentals the rest of the year. 

So in this scenario the only profit is in the yearly appreciation and increased equity of $6,000 per year of principal payments.Exit Plan is to sell, take the equity and likely use in another investment.If I sell now instead of renting the upside I see is pocketing $85k in appreciated value after paying real estate fees.

Now: Pay contractors what they're asking.Then: Argue with tenants about what to fix and what not to fix.Now: Fix everything. 

Would disclosing these terms in closing be sufficient for the seller especially if paying a higher price?