Could I ask how involved was your process of investing, how much did the RE agents help in all the process (finding properties, negotiating price, arranging inspection, paperwork, legal, etc) or was it mostly work you did on your own?

@Ike Ekeh How things go really depends on whether the parcels involved are already incorporated into the relevant municipality's growth plan. 

If it is toxic black mold, the remediation process is very involved.

Pending litigation could have been decided with final judgment entered; perhaps litigation initiated involving the property, lis pendens recorded; federal tax lien could have been recorded... lots of things can happen before settlement.

However, prices inceased so much, and the square footage (over 1k) and amenities were so nice that we decided just to hang onto it.  

in so cal it would be RARE to have a lawyer involved in this transaction @David Weintraub  we are a title and escrow stateso take out the 1k  and the two addition doc review fee's 750 and 795  those are straight to the lender for his profit side.other than that fee's are fairly standard..

@Aja McClanahan - I think you need to get an experienced contractor/architect and maybe a zoning attorney involved. 

If you want to get involved in the day to day & make an active business buy a distressed property cash, renovate it & refinance.

You actively participate if you are involved in meaningful management decisions regarding the rental property.I guess you can still have Management in place and still participate but I'd double check with your accountantthx,Chris

It seems as though you could work with the Seller (based on what you said, seems like a good person that wants to do right by everyone involved) to have him/her provide your lease (with the current owner's information substituted for your own) for tenant signatures, set to take effect once the current lease expires.