@Mike Moe Since they have paid their rent through the 30th they have every right to stay right up until 11:59 p.m. if they so wish. 

Holding back the money helps motivate them to stay honest and complete the job or never start it once you see their true intentions.Some say they need the money to buy materials.

@Ryan BrooksNot sure why the seller would do that as the lien stays with him not the property once you take ownershipAny $ he makes off the deal goes to IRS first do his best bet would be to sell it for $235k and get IRS and mortgage paid off then he never has to worry about itYou cannot assume someone’s IRS liens

He would stay rent free and I would have my own house at 27!

I do believe the tax limit for gifts is 15k but I am not an expert in any aspect of real estate so double check.Is she only interested in getting a return on her investment or would she consider staying in the deal with you.

I am in the Seattle area now, I have a friend who is in Utah, who is also looking to get into investing as well, so I'm not sure if I should stay here or start there.

If you are wanting to stay in the real estate market, you could buy multiple SFR depending one the area or you could be more passive and buy into a syndication or REIT.   

You could make it clear that she needs to move out by end of October if she can't get and stay caught up. 

I would rather stay away if you have to cover electric. 

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