However still the risk does exist if someone left a chair in there that they can start making claims.

Any of these are potential red flags.Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)Don't allow for your own independent property inspectionAre not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)Require you to pay for any renovation upfrontSell only in cheap. low end neighborhoodsDon't accurately represent the neighborhood/property classificationDon't have consistent rehab standards for all propertiesDon't provide a scope of work for the propertyCan't provide references of repeat investorsRequire you to close before a tenant is in place

Ive started to feel like my goal to get in to real estate investment is unrealistic because I’m starting from literally no savings.

(He very brash and aggressive and wants to control the conversation)My assumption is he’s tried to sell the property before and was offered 80K because he keeps throwing that number around as what he would never take.He claims it’s a 3/2 ranch that’s vacant and sits on 5 acres of land that he owns free and clear of any mortgages or issue with liens or taxes.

Requiring renter's insurance can also help protect you from claims of damaged property. 

Sounds right, as long as the loan is used for rental activity, there is no issue claiming interest.

I am not worried about trying to claim ownership or anything, since mortgage is under Homeowner (A)'s name.

-Contact HUD (BP is preventing me from listing their phone number)-Take the landlord to small claim's court-Contact the local media and tell them about the situationYou can even find a lawyer who might take the case pro-bono just to nail the landlord to the wall. 

There is not a problem with deposits being refunded in our state and if it occurs the former tenant has a clear path for recovery of triple damages through small claims court and subsequent lien as it would be non exempt property  

If you have an LLC you can have your attorney or title do a quit claim deed.