Previous owner took it over 18 months prior from an older lady who had let it go to seed. 

Yes, it can become heated, because the one usually cutting down the agent community has either had terrible experiences with prior agents, or has a great deal more transaction experience than most and just don't see the price vs. value relationship. 

Note if you refinance them, your cash flow situation is likely going to be about where it was prior to the value add but your equity has increased and what you have actually invested has decreased.

Some are advising that this carryforward can now be applied to 5 years of prior period taxes paid and refunded for those amounts AND the taxpayer would get a check for amount of the carryforward if there was no prior period liability.

Also find out when she will be no longer living there, sometimes people build in some moving time prior to official move out date and you could negotiation something then even if its not a firm commitment on her part. 

Or will they not even offer a bond since there was prior damage?

Get preapprovedGetting preapproved is something you want prior to viewing properties.

We will require last month rent at the time the lease is signed and first month rent prior to move-in. 

During this time I would be saving that $1,200 I was paying in rent for the prior two years since I am used to that money leaving my wallet and save it towards my next downpayment on a rental property.

During this time I would be saving that $1,200 I was paying in rent for the prior two years since I am used to that money leaving my wallet and save it towards my next downpayment on a rental property.