Adding  about 2.5% closing cost of 17.5k will bring you to about 50.5k (rough estimate) out of pocket. 

I am not keen on returning any of this money back to the main tenant as it is very evident that the damage he has caused on the property with a rotating cast of characters and a pet is likely significantly higher than $2000.5) Legal fees and other costs: Can we include a demand for unpaid rent, legal fees, and other costs in the eviction process for our tenant or does this have to be a different suit?

Honestly, I've been getting screwed with some big ticket issues (related to HOAs, selling different properties, continual unforeseen maintenance and costs) and this one really crushed me once I realized it was an actual issue.

If you have $50k to invest then you will probably be looking at properties in the mid-to-high $100s (assuming you're putting 20% down + closing costs and a little cushion).

That cost's $.

All told, the GP is making $337,500 just to arrange the deal (not including their reimbursement of any out of pocket costs they have already covered: due diligence costs, broker costs if they are paying anyone to bring them deals, legal setup costs, etc).  

Doesn't matter what it costs it is YOUR RESPONSIBILITY.

I mean a deal will cost you 150k in capital, maybe more. 

Currently they are rented to 2 different mid-term rental investors = basically no management cost to me + no turnover headaches for me.

The appraisal came in at $120k where the purchase price was $78k and $22k reno cost for all-in of $100k.