If you're going to invest long distance prior to living in the property, your down payment will be greater (20-25%), 20% because it is an investment property and 25% if it is more than a SFH (duplex, triplex, etc.). 

I agree with the prior posts. 

Make sure you are financially sound though prior to investing as those habits will be very important to being sure you don't get in over your head.

Regardless, the lender and title company should have discussed any amount due prior to closing when your offer was accepted. 

You are correct on doing due diligence on prior liens.

About an hour prior to closing I showed up to do my pre-closing walk through to verify the house had not burned down and to retrieve my lock box.

It all depends on when their prior lease ended and what the clause said regarding the lease automatically renewing. 

Current or prior ownership of real estate: Currently own 1 rental house in Portage,IN and have only my DP in equity, 25% but comps in the area show property worth another 10K (+ the 25K down)Occupancy: 2 homes pay land lease, 4 long term renters and 5 other homes leased with an avg 90% occupancy.Value of property at present and/or your offer price: $175K list and seller is willing to leave 12K in escrow return to buyer after purchase.

Current or prior ownership of real estate: Currently own 1 rental house in Portage,IN and have only my DP in equity, 25% but comps in the area show property worth another 10K (+ the 25K down)Occupancy: 2 homes pay land lease, 4 long term renters and 5 other homes leased with an avg 90% occupancy.Value of property at present and/or your offer price: $175K list and seller is willing to leave 12K in escrow return to buyer after purchase.

 You should review your state's rental property laws or consult an attorney.Usually the state requires a certified letter of lease non-renewal to be sent to the tenant's residence 30, 60 or 90 days prior to the ending of their lease.