Don't offer to take it out of his deposit because he may fail to turn the unit over in good condition and then you've lost all leverage.Pay the termination fee and sign a written agreeementAfter he vacates, inspect for cleaning and repairsApply the deposit and/or refund, as necessary

Or should I loan the money to the LLC mirroring the same conditions as my lender?

Not sure of the inside condition of these properties but there are definitely deals to be had around town if you're networked correctly.I'd love to get on the phone with you and discuss your strategy and try to be your resource for real estate investing in Nashville.I'll DM you.

They bought it 2 years ago for $55k and put 2 brand new furnaces in, other than that I can't tell that they have done much of anything, over all the properties are in pretty decent condition. 

Buying at auction sight unseen other than a walk around, I was stunned to see when i finally did get inside that the home had forced air heating and central air conditioning.....really lucked out there...it appears to be original because it had these big old cast iron floor grates.

.- “Landlord is required to supply at all times during tenancy…a unit in a clean and safe condition and the premises in a habitable condition…"- "Uninhabitable - ...Defects or conditions ... unhealthy such as cockroaches or mold..."

The few deals I walked away from were based on the location (even though a BRRR would've worked) and the condition of surrounding homes in the nearest block.

The house is two stories, about 1,500 sf, 3 bed 1 bath, brick, and the exterior appears to be in decent condition. 

Hope this helps.Partner 150% OwnershipSelect ProjectAgree to Price of Offer and Other Conditions Submit Offer to BrokerAgree to Rehab Plan and Schedule Prepare Funding Opportunity Document Solicit Investors for FundingCoordinate Funding for the ProjectCoordinate Documents with Attorney for Funding Coordinate with Attorney Closing Dates and Fees Coordinate with Real Estate Broker on DetailsSecure Property Insurance and have Utilities Activated Secure Bank Account to Pay BillsPayments over $500 Require Approval of Both Owners Prepare On-Line Advertising for Property Available for Rent Upon Selection of Tenant Run Criminal and Credit Check Agree to Rent Amount and Security DepositProvide Updates to our Private Investors as to Progress of Project and Coordinate with the Bank on the RefinanceRequest Appraisal as soon as PracticalProvide Personal/Business Credit to Secure Refinance Close on Refinance Within Scheduled TimeExit StrategyPartner 2 50% OwnershipSelect ProjectsAgree to Price of Offer and Other Conditions Develop Plan for RehabDevelop Construction Schedule Develop Budget for Rehab Coordinate with Outside Contractors Initiate and Complete RehabLabor will be at cost as part of Participation to Operating Agreement Agree to Terms on Funding Conditions i.e., Interest Rate etcCoordinate Permits if Applicable with Government EntitySchedule Inspections and Remedy ComplianceSecure Certificate of Occupancy or Final Inspection Approval Both Members will Agree to Pay BillsPayments over $500 Require Approval of Both Owners Coordinate Showing Property to Prospective Tenants Select Prospective Tenants and Recommend to Member Agree to Rent Amount and Security DepositClean Up Property for TenantProvide Property Management and Maintenance Provide Personal/Business Credit to Secure Financing Exit Strategy

If I don't put any money into repairs (I've never seen the inside so I have no idea what condition it's in - this is just an exercise), I'm seeing around 15% cash on cash return.When estimating the rents, I went under what the seller had reported.