They were inherited tenants from the person we bought it from.  

Last thing you want is to inherit a property where the tenant can call adverse possession on you- it will bankrupt you and the property!

current owner inherited the property and is living in it, looking to sell to move closer to their work on the other side of the city ( according to selling agent).

I inherited a two family in Dorchester that I am trying to fix up and rent one of the units with family living in the other unit.  

There might come a day when someone passes and their kids inherit a portion and you do not want them as partners etc.

Also, I've been doing a lot of research recently into commercial lending and have been told by lenders that recourse loans can often be negotiated so that the recourse lessens and / or expires over time.

I'm just about as new to investing as I am the site.I have just begun working with a seasoned partner in the area and we are in discussions with a property owner that inherited a run down home in a very lucrative rebuild area.The owner is trying to avoid capital gains or estate taxes, and we have discussed a possible 1031 exchange with him, but he is nowhere near knowing what he would want in exchange, so we are avoiding that plan for now.What we want to do is submit an offer with the intent of it becoming a purchase money mortgage, giving the seller 10-15% on his loan of perhaps 12-14 months for completion, so that we can use the mortgage to obtain a new construction loan on the lot.What issues may arise from this type of situation?  

Here, if you buy a building you inherit tenants and must honor the existing leases. 

What I gather from him is that it is a group of brothers and sisters that have inherited this house and it is free and clear. 

These absentee owners are people who own properties (for a variety of reasons) but do not live in said properties (landlords, inherited, etc.).