It appears that the property has some relation to a reservation since the Bureau of Indian Affairs is involved, plus it may be that it was purchased on a Contract for Deed, and the deed never got recorded after the property was paid for. 

I can be able to fund you before then but before we proceed further i need you to understand that there is a $650 fee attach to the loan and that this fee will be paid upfront and cannot be added or deducted from the loan amount....If you fee uncomfortable because of this fee then i cannot be able to continue....Let me know if we are to proceed or not"

One previous landlord reported that he paid rent late four times and that they asked that either he moved or they'd proceed with eviction.  

They do consider any option consideration paid as part of the down payment and allow seller-concessions for closing costs and non-repair items (like a landscaping allowance).  

Househacking is a term coined from @Brandon Turner, and its probably the best idea ever for new investors willing to get ahead instead of falling deeper into a labor paid mortgage/debt with no real return.  

It would help you to have a pre-approval loan letter that you can submit with your offer.  

If you purchase a property and inherit the tenants, tenants who most likely paid security deposits at one point, how is the legal transfer of the security deposit money handled?

What you expected is irrelevant, the only thing that matters is what your purchase contract states.Normally you would demand a prorated rent, no deductions, as well as any and all deposits the tenants have paid.

. - I originally went to the Fonville Morisey RE School in Durham (SouthPoint) for pre-licensing; and I completed my post-licensing at the Go School in Cary.

@Brian Pulaski I'm not sure I'd be happy to find I paid 10K for 5K cabinets even when I made a considerable profit off the deal.