Failed (Failing) institutions are a thing of the past for the most part and any bank failing, would more than likely be acquired by the FDIC and sold to another bank under a loss share agreement with the acquiring bank.Your first "reason" contradicts your statement.

Hopefully I can acquire enough information to move forward.I'm eager to meet many of like minded folks here on BP.V/r

It worked with my investment strategy because I was acquiring class B/A SFRs in great locations where I was able to attract top quality tenants and I spent lots of time/effort on tenant screening.  

Tenant agrees to a new termination date of the lease of July 31, 2015....Landlord agrees to refund to Tenant all unapplied pre-paid rent less costs for damages, utilities overages, cleaning, and financial remedies upon the date Tenant quits and vacates the property.Would you recommend billing the tenant for the damages from Question #1, or go ahead and deduct the amount for damages from the rent refund just as the tenant signed and agreed to in the Early Termination agreement?

I have recently acquired a client from Europe looking to invest from abroad.

In many aspects, net worth will not be a concern to a newbie investor, as they acquire more properties it becomes a factor for financing. 

Although during the process of closing one of the tenants (month to month) acquires 2 cats.

I'll be acquiring another future rental when I transfer to Florida in the near future.

By offering to take it off their hands for a low price, in their eyes they see it as a free paycheck and on your end you acquired the property for a great deal.

The current owner acquired the property through a lien and only has owned it for a few months and before that it was bank owned for about 5 years.