I assume that puts the rehab costs around 25-30k.My next steps are to research the property records in the court house.

Have them write your lease, as they will be the ones defending it in court.

If they pay before the court date it would still show up on their record as $0 gal (No dismissed).  

Does the "see you in court" reference mean that you two are at odds on the contract now that the closing is likely delayed? 

We were able to prove that the seller knew of the problem and filed a suit in small claims court.

I try to place section 8 tenant in all of my property because they usually pay more than cash paying tenants and I never had to take the Government to court for eviction for non payment it's always the cash paying tenant.

He should have been back in town by now and I want to know what is the best way to proceed to take them to court?  

We should have our own fully-functioning portal and robust marketing campaigns ready in the next 1-2 weeks.  

It seems that it would be very hard to prove in a court of law if the tenant wants to contest it.

A 3 family is an income property though, the value is a function of what an investor is looking to get out of it.