Lenders will want the buyer to pay pre-paid items, appraisal, application fees, insurance binder and taxes. 

"Any and all tenant deposits along with any prepaid rents (security/pet deposits, last month's rents, etc.) shall be transferred to buyer at closing, verified by tenant signed estoppel letters", just off the top of my head. 

We're going to try and offer him some of the pre-paid rent refund to leave now, and give him the rest once he's completely out.

Per dodds frank no other concessions can be made except for pre-paid closing items 

Is rent prorated like prepaids?

You can email her a contract that she can print out, sign and take to an escrow company you pick out or you can overnight her a contract and include a prepaid envelope with escrow's address on it that she can put the contract in and mail off to them.I never look at anything I wholesale.. unless I'm forced or coerced to see so doing it out of state shouldn't be any different.

@Brian Gibbons and @Bill GulleyThanks for all the information.I will be seeking out a "Residential Real Estate Contract Lawyer" and see if I can get a consultation.I have heard of a couple people in our REIA as well as Wendy Patton in her books reference using PrePaid Legal for their Legal team for getting contracts drawn up or reviewed or just in general legal advice.  

If the loans were current, and never modified or prepaid, you could do the amortization.

I just got home from the bank, went to sign papers and go over everything before closing. detail.single family rental  - buying for 40k with 20% down - conventional loan 30yr fixedbuyer agreed to pay 3% in closing = $1,200Here is the break down of the loanPurchase price                    $40,000Estimated Prepaid Items     $1,717.35Estimated Closing Cost       $2,478Discount                               $560total                                      $44,755.35Seller pays 3%closing        $1,200Loan amount                       $32,000Cash To Bring at Close         $11,555.35I got quoted 5.375% for the loan rate, then i agreed to pay $560 to drop it down to 5%Is this normal for the rate to be this high?

Good advice above.In addition, I would strongly advise against using any kind of pre-paid legal forms!