This way you avoid passing along the same problem to the next owner.

It was rented out, but the owner isn't able to show any rent history on it since he wanted to avoid paying taxes.

(House hacking)If you currently “own” your primary residence (even if the bank owns most of it.) you could move to a new home as your new primary (better rate and terms as a primary and you could put less down though I would still suggest putting 20% down to avoid PMI) and rent out your current home. 

Cash for keys to me is generally what is offered to potential occupants once a home is foreclosed in hopes of avoiding an eviction.

Some commercial brokerage have very high desk fees and expect you to generate sales not to do investment for yourself so you need to avoid them.

@Jason LeeA disqualified person who participated in a prohibited transaction can avoid the 100% tax by correcting the transaction as soon as possible.

It looks like an opportunity to dispose of property in order to avoid paying tax and the new owner looks like they did not purchase the property to hold. 

As for my goals, the main goal is to own a house in Gainesville that we can live in to avoid paying rent, and to keep her house there as a rental property and a good chunk of equity.

You don't ever have to have an inspection when buying with cash, but it helps avoid unknown repairs that may have been missed.

Note Investing Pitfalls to Avoid"… And more!